FM adds parametric capability under alternative risk transfer expansion

By Rebecca Delaney Oct 15 (The Insurer) — FM has launched a parametric insurance offering as part of a broader expansion of its alternative risk transfer solutions, the commercial property insurer said on Wednesday. An FM spokesperson told The Insurer that parametric insurance capacity would depend on client need, but would generally be a "small fraction" of the capacity FM provides on its core risk transfer product. Initial appetite includes hurricane, extreme rainfall and earthquake, with plans for the suite of perils to be expanded over time. The parametric offering will initially focus on perils in the US, which FM said will also expand over time. As part of the wider expansion of its alternative risk transfer solutions, FM has also introduced a structured risk solutions capability, as well as extending its existing captive cell offering. Structured risk solutions allow organisations to participate in loss outcomes in exchange for the potential return of premium, which FM said helps to create closer alignment between insurance spending and actual loss performance. Alternative risk transfer solutions is managed within FM's staff underwriting and reinsurance department, under the