Parameter Climate establishes Bermuda transformer

Climate risk advisory, distribution, and analytics firm, Parameter Climate, has announced the creation of Parameter Capital Bermuda Ltd., a transformer domiciled in Bermuda designed to support the firm’s strategy of simplifying the process to transact parametric products indexed to climate and weather risk.

New York City headquartered Parameter Climate began offering advisory and brokerage services to protection buyers in 2024, successfully advising on the placement of over $100 million of parametric weather transactions.

The company also started licensing ClimateDelta, its “state-of-the-art” climate risk transfer analytics platform, signing up numerous global subscribers in its initial year.

Parameter Capital Bermuda will be serviced by the Nascent Group, and represents the first parametric transformer dedicated to connecting industrial protection buyers with alternative capacity providers.

The firm explained that as the majority of parametric climate and weather transactions are currently being placed on a winner-take-all basis with a small group of rated re/insurers, it believes that significant market growth rests on the ability to syndicate risks beyond traditional capacity providers.

Martin Malinow, Founder and Chief Executive Officer of Parameter Climate, commented, “Our hypothesis from the outset was that growth in the parametric climate and weather market was being hindered by a lack of analytics, intermediation, advisory and broad access to capital.

“With ClimateDelta on the desks of a growing number of market participants, and our advisory and distribution businesses gaining momentum, Parameter Capital is the logical next step as it will facilitate syndication and help protection buyers access a broader ecosystem of capacity providers.”

He added, “Most of our vertical-based protection buyers have little experience buying collateralized climate and weather protection, which has limited their choice of counterparties. Parameter Capital aims to become a commonly accepted counterparty for these buyers through which they can access various forms of capacity, thus ensuring they get the most effective execution as they manage these complex risks.

“We set out to build a best-in-class, tech-driven advisory and distribution firm, and we believe that the ‘last mile’ execution services provided by Parameter Capital supported by the cutting-edge analytics on ClimateDelta will further differentiate Parameter Climate from others in the space.”

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