Stonybrook delivers parametric coverage for Caribbean client

Stonybrook Risk Management has completed a parametric insurance transaction. The transaction was distinctive in utilising a parametric solution to replace traditional insurance for an unnamed Caribbean-based client.

The transaction was led by parametric veteran Dan Butzbaugh, who commented: “Stonybrook was able to replace our client’s traditional insurance with a stand-alone parametric structure with rates and security competitive with the traditional marketplace”

Buyers in hurricane-prone areas are finding it increasingly difficult to hedge their assets using traditional insurance products and have turned to parametric insurance to provide coverage where the traditional market hasn’t responded. Stonybrook leveraged its parametric expertise to design a product without traditional deductibles and exclusions, and secured terms to respond within days to weeks post event.

Paul Kneuer, partner and board member of Stonybrook Capital, also commented, “Our creative solution addressed the buyer’s particular coverage need more efficiently than the indemnity insurance market could. Stonybrook looks to meet our clients’ needs across all possible markets to find the best outcomes.”

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