Our Asia-based parametric team, supported by global experts, structured and placed a bespoke parametric insurance solution for an Aboriginal-owned not-for-profit organization in Australia, addressing critical cyclone risk exposures across an Indigenous Protected Area spanning over 2.5 million hectares. The engagement combined a local Australian team with regional parametric capabilities and global specialist support, demonstrating a coordinated delivery model across APAC.
The client, an existing Lockton Australia customer, had historically maintained traditional cyclone insurance. However, the introduction of a restrictive cyclone sublimit materially reduced available protection for a key exposure. In response, Australia team worked closely with Asia team to develop an alternative risk transfer solution that restored meaningful protection.
The customized parametric structure was aligned to the client’s business continuity needs and risk tolerance, enabling rapid, pre-agreed payouts based on predefined triggers, including wind speed and geographic parameters. This removed the need for lengthy loss assessments and provided critical liquidity following severe weather events.
Leveraging in-house modelling, structuring expertise, and global market access, the team secured competitive terms and reinstated essential cyclone protection for the client.
For this Indigenous-led organization, which represents and manages the native rights of an Aboriginal community in Western Australia, timely access to post-event funding is critical. The solution provides greater financial certainty following extreme weather events, strengthening resilience against climate-related risks.
This engagement further demonstrates Lockton’s ability to combine local client engagement with specialist parametric expertise and global market access to deliver innovative, client-centric solutions for catastrophe-exposed clients across APAC, particularly as traditional insurance capacity for climate-related risks become increasingly constrained.