Parametric Insurance Editing and Proofreading Services

The hurricane destroys the hotel and the policy pays nothing. Sustained winds at the reference station eleven kilometres away reached 94 knots against a trigger of 96, and the contract does exactly what it says. The owner understood they were buying hurricane cover. They were buying a wind speed measurement, and nobody made that distinction the thing the conversation was about.

We edit what parametric insurers, brokers and buyers produce — trigger definitions and index descriptions, policy wordings and their plain-language summaries, basis risk explanations for buyers, data source and calculation agent documentation, payout schedules and settlement notices, structuring proposals, and the material used to explain the product to a board approving it. Our editors work on a product whose main risk is a misunderstanding.

The trigger definition and its basis risk is the whole of a parametric contract, and its failure is a description that lets a buyer believe they are insured against a loss. This product does not pay for damage; it pays on a measurement. We work through these so the trigger is stated exactly — the parameter, the threshold, the measuring station or dataset, the averaging period and the reporting agency — since each of those is a place where the contract and the buyer's expectation can part company; so the basis risk is described as scenarios rather than as a defined term, because "you may suffer a loss and receive nothing, and you may suffer no loss and be paid" needs to be shown twice with real numbers before a buyer has absorbed it; so the distance between the reference point and the insured asset is stated with what that distance has historically meant, given that eleven kilometres is the difference between a payout and nothing; so the payout structure is set out as a table with what is received at each level rather than as a formula; so the data source's own revision policy is addressed, since agencies restate figures and a contract must say which version governs; so the calculation agent and the dispute route are named; so the settlement timescale is stated in days, as speed is the reason to buy this product and should be quantified; and so the summary says plainly what this is not. Documents written this way are bought knowingly.

Everything you send is treated in confidence, including structures, pricing, modelling and client correspondence. We are editors rather than brokers, modellers or advisers, and we give no advice on cover and offer no view on any structure, trigger or settlement. What we can do is make the buyer understand what they are buying.