Howden launches Climate Parametrics unit, co-led by Douglas and Kusche

Howden, the global insurance and reinsurance broking and underwriting group, has launched a new Howden Climate Parametrics unit, to bring together its parametric risk transfer, climate risk and resilience, capital markets and insurance-linked securities (ILS) expertise, to deliver responsive risk transfer solutions.

Howden is targeting the climate and nature based risk transfer sectors, as well to the delivery of risk transfer solutions that can support the transition to a low-carbon economy and protect biodiversity, with the launch of Howden Climate Parametrics.

The unit will have a team of more than 30 staff, with expertise drawn from across the Howden business.

This will involve analytics and advisory, structuring and placement, underwriting and capital markets, the company explained.

It’s important to note the bringing together of capital markets, or insurance-linked securities (ILS) expertise and capacity sourcing with this initiative, as the deployment of efficient capital alongside responsive risk transfer solutions could make for a more compelling offering.

Also demonstrating a joined-up approach across the Howden Group businesses, the company has said that the Climate Parametrics unit will be co-led by Rowan Douglas, recently-appointed CEO of Climate Risk and Resilience at Howden, and Philipp Kusche, the Global Head of Insurance Linked Securities at reinsurance and risk capital focused arm Howden Tiger.

Rowan Douglas, CEO Climate Risk and Resilience, said, “The curiosity and excitement surrounding parametrics as part of the climate solution, was palpable at New York Climate Week in September. From infrastructure to agriculture, urban resilience to mangroves, through to the carbon markets, everyone wants to learn more, but this wider curiosity is often matched by confusion. It is a new area for many in the climate mainstream with strange jargon and different concepts. Howden has made a pioneering move to combine its climate, parametrics and sector expertise into a unified global practice. As part of our client commitment to de-risk their resilience to climate change and low carbon futures, Howden Climate Parametrics will demystify the concept of parametrics and deliver solutions to protect assets, lives and livelihoods.”

Philipp Kusche added, “Howden is scaling up and enhancing its capabilities to lead the market response to climate change. Our strong presence at the Monte Carlo Rendezvous and New York Climate Week this year symbolises our ability to deliver across the value chain and fulfil the structural demand for more resilience and financial solutions to the greatest challenges created by climate change and the net zero transition. Our collective approach, and our rapidly expanding Climate Risk and Resilience practice, creates a powerhouse of parametric potential that we look forward to deploying to serve our clients and to build this vital market with our carrier partners.”

Parametric insurance, reinsurance and risk transfer solutions are seen as critical in narrowing protection gaps around the world, as well as creating new risk products for climate related exposures that are uninsured today, protecting nature and biodiversity assets, delivering risk solutions to support climate transition projects, and protecting renewable energy assets and generation.