Best Parametric Supply Insurance Firms in USA
Non-sponsored, Expert Verified and Transparently Ranked Parametric Supply Insurance Firms in USA
Published: December 30, 2025 | Verified by: Ted Scheiman & Rob Watts
Executive Summary
We analyzed 5 solutions. Top Recommendation: Parametric Cargo Delay Insurance by Otonomi scored highest due to Best for freight forwarders and shippers needing near‑instant delay protection across lanes. Automatic payouts when delays breach set thresholds, U.S. producer licensing for distribution, and demonstrated traction with thousands of shipments covered signal reliability for time‑sensitive supply chains. [1](https://www.otonomi.ai/request-a-quote) [2](https://www.theinsurer.com/parametric-insurer/news/cargo-delay-mga-otonomi-passes-10000-shipments-covered-as-it-pursues-2025-11-07/) [3](https://www.otonomi.ai/media/otonomi-partners-with-greenlight-re-innovations-to-launch-an-innovative-platform-for-parametric-cargo-insurance).
Content Verification
Side-by-Side Comparison
| Feature | #1 Parametric Cargo Delay Insurance (Otonomi) | #2 Parametric Insurance Solutions (Descartes Underwriting) | #3 Risk Consulting, Brokerage, and Claims Advocacy Services (Marsh) | #4 Reinsurance Solutions for Insurers (Munich Re (US)) | #5 Parametric Solutions (Swiss Re Corporate Solutions) |
|---|---|---|---|---|---|
| Best For | Best for freight forwarders and shippers needing near‑instant delay protection across lanes. Automatic payouts when delays breach set thresholds, U.S. producer licensing for distribution, and demonstrated traction with thousands of shipments covered signal reliability for time‑sensitive supply chains. [1] [2] [3] | Best for logistics hubs, industrial facilities, and real‑estate portfolios exposed to flood‑driven disruption. On‑site sensor triggers enable fast payouts within days, and high limits support enterprise‑scale resilience planning for supply‑critical locations. [1] [2] [3] | Best for manufacturers, retailers, and pharma shippers moving time‑critical goods. Provides automated, AI‑assisted delay protection with selectable 6, 8, or 10‑day triggers and typically pays within ~14 days, closing gaps left by conventional cargo insurance exclusions. [1] [2] [3] | Best for large U.S. corporates seeking weather‑triggered protection for logistics, transportation, and supplier networks. Coverage targets supply chain disruptions and provides rapid, index‑based payouts with turnkey, white‑label options for enterprise deployment. [1] [2] [3] | Best for enterprises needing swift cash flow when suppliers or sites are impacted by non‑damage events. NDBI and parametric structures address domino‑effect supply chain disruptions, with products like QUAKE paying quickly based on USGS data triggers. [1] [2] [3] |
| Payout Speed | Automated parametric payouts; delay claims settle within 48 hours. (otonomi.ai) | Within days; typically 5, 10 business days after the event/trigger verification. (descartesunderwriting.com) | Typically paid within 14 days of delay detection, after the insured acknowledges a qualifying loss. (marsh.com) | Payouts are rapid after trigger (no adjusters), providing fast liquidity; payments are made quickly but not immediate. Munich Re, backed parametric products are designed to pay within 30 days and have paid within 3 days in practice. (munichre.com) | Payouts are processed quickly, usually within 15, 30 days, often faster. (corporatesolutions.swissre.com) Since 2020, Swiss Re Corporate Solutions says it has paid all parametric claims within 30 days. (corporatesolutions.swissre.com) Example: Parametric QUAKE paid the State of Utah in under four weeks. (corporatesolutions.swissre.com) |
| Trigger Accuracy | Uses Chainlink decentralized oracles to power triggers with high‑integrity logistics data, reducing human error/fraud and improving delay detection accuracy. Policies auto‑activate at departure and trigger payouts when actual arrival exceeds thresholds (air: 3, 12 hours), leveraging real‑time flight data. (otonomi.ai) (marsh.com) | On-site sensor trigger measures maximum flood depth at the insured location with 2 mm accuracy and live alerts, creating objective, verifiable triggers that minimize basis risk. If sensors aren’t suitable, triggers can use nearby USGS river gauges or highly accurate storm‑surge models. (descartesunderwriting.com) | Automatic, objective triggers based on third‑party API detection of Actual Time of Arrival exceeding preset thresholds: marine 6/8/10 days; air 3/6/12 hours. This design minimizes subjectivity and supports accurate, consistent triggering. (marsh.com) | Triggers are pre‑agreed and recorded by independent third parties (e.g., National Hurricane Center; USGS), ensuring transparent, objective measurement. (munichre.com) Munich Re mitigates basis risk to improve trigger accuracy using higher‑resolution data (e.g., satellites) and trusted/governmental or third‑party indices (e.g., Modeled/Area Yield), tailored by peril and location. (munichre.com) | Triggers use objective, third‑party data at insured locations: QUAKE retrieves USGS ShakeMaps within ~10 days and pays on the highest ground shaking at policy locations, and HAIL relies on CoreLogic hail-size verification. Zip code/intensity-based payouts reduce basis risk. (corporatesolutions.swissre.com) |
| Integration Capability | REST/OpenAPI enables embedding quoting, binding, and certificate retrieval (API key auth) into partner or booking flows. (otonomi.redoc.ly) Automated claim triggers integrate external data via Chainlink oracles and BlueBox Systems’ tracking API; supports embedded partner integrations (e.g., Redkik). (otonomi.ai) | Integrates via on-site, battery-powered flood‑depth sensors installed by third‑party experts, feeding a live cloud dashboard with customizable SMS/email alerts; supports multi-site deployments and remote diagnostics. Alternatively uses public USGS/NOAA gauges or model‑based indices, and can be embedded within a client’s insurance program or captive. (descartesunderwriting.com) | Integrates via Marsh platforms (Bluestream, MarshCargo) to embed insurance in partner workflows and share policy data; connects to insurers, payment providers, and third parties without extensive custom development. (marsh.com) Parametric cargo delay uses third‑party API data for automated delay monitoring and claim triggers, supporting real‑time access and streamlined processing. (marsh.com) | - Custom APIs for agent integration via Firebrand wildfire platform; includes dashboards and real‑time portfolio tracking. (munichre.com) - Parametric solutions offered as turnkey, white‑label products with full‑service implementation; automated triggers use external data (e.g., National Hurricane Center). (munichre.com) | Integrates with external data/sensors and a digital platform: USGS ShakeMaps to trigger QUAKE; CoreLogic hail data for HAIL; Reask windspeed for STORM; optional on-site OYOSI seismographs in Japan; POP STORM automates broker quote/bind for SMEs. (corporatesolutions.swissre.com) |
OtonomiCompany Information
Description
Otonomi provides shippers a simple yet powerful way to mitigate financial risks arising from cargo delays through an AI-assisted algorithm that delivers instant delay quotes.
What They Do
Otonomi offers cargo delay insurance and risk management solutions for logistics and supply chain operations.
Who They Serve
They serve shippers, logistics companies, and transportation firms globally.
Key Value Propositions
Case Studies
AOG/MRO: Aircraft Parts
The Aircraft Parts industry demands expedited and high-touch shipping methods for critical aviation parts, necessitating shipping delay insurance.
Read Case Study →Vaccines Shipment
Air cargo is critical for the pharmaceutical industry, with transportation representing a significant portion of total volumes.
Read Case Study →Flowers Bouquets Exports
Due to high-touch transport requirements, shipping delay insurance is essential for flower bouquet exports.
Read Case Study →Unlocking The Conversation On Cargo Delays
Otonomi addresses the reasons behind air cargo delays and the solutions they provide.
Read Case Study →Target Customers
Industries Served
Trusted By
Contact Information
Key Pages
Summary
An MGA‑led parametric program for air and ocean shipments that pays when delays exceed predefined thresholds (e.g., 12 hours for air). Licensed in multiple U.S. states, Otonomi automates quoting and claim triggers, partnering with capacity providers to scale coverage.
Detailed Comparison
Payout Speed
Trigger Accuracy
Integration Capability
Parametric Insurance Solutions
Descartes UnderwritingCompany Information
Descartes Underwriting is a global insurance company specializing in parametric insurance solutions for climate, cyber, and emerging risks. They offer data-driven coverage for various industries, including agriculture, construction, and renewable energy, utilizing advanced technology and machine learning algorithms.
Keywords
Description
Descartes Underwriting offers a new generation of parametric insurance against climate, cyber, and other emerging risks utilizing state-of-the-art risk modeling techniques and advanced technology.
What They Do
Descartes Underwriting specializes in parametric insurance solutions that provide fast, predictable payouts based on predefined triggers.
Who They Serve
Corporate insurance brokers and large corporations.
Key Value Propositions
Case Studies
Earthquake Resilience for Corporations in Japan
With Descartes’ parametric product, payouts trigger automatically based on the Shindo scale—delivering fast recovery.
Read Case Study →What Customers Say
"The underwriting team is very good to deal with. Upfront, honest and thoughtful."
— Account Manager, Leading Insurance Broker
"Very helpful with established perils and willing to consider novel solutions. Good communication and service time."
— Parametric Lead, Large Reinsurance Broker
"Good service and always able to support."
— Vice President, Tier 1 Reinsurance Broker
Target Customers
Industries Served
Contact Information
Key Pages
Navigation Links
Summary
A U.S. parametric flood product that measures on‑site flood depth via sensors and pays according to a pre‑agreed payout schedule. Built for commercial customers, it targets operational losses and offers rapid settlement without adjusters, with high available limits.
Key Features
- Escalating payout structure based on event severity
- Indices derived and back-tested from high-quality datasets
- Proprietary risk models using advanced techniques
- Coverage for a wide range of climate and emerging risks
- Standalone or complementary to existing insurance
Key Benefits
- Event-driven, transparent payouts based on objective data
- No on-site loss adjustment required
- Faster and more certain claims process
- Complements or extends traditional insurance coverage
- Addresses protection gaps left by indemnity insurance
- Reduces risk exposure to climate and emerging risks
Who Is It For
- Corporates and public entities exposed to natural catastrophes
- Industries impacted by climate and weather risks
- Agriculture & Forestry
- Energy & Renewables
- Construction
- Retail & Consumer Goods
- Public Sector
- Financial Institutions
- Manufacturing Industry
- Hospitality
Use Cases
- Protecting property and assets from natural catastrophes
- Mitigating revenue loss in agriculture due to weather events
- Managing operational disruption from river level volatility
- Securing wind energy revenue against lack of wind
- Safeguarding supply chains from climate-driven events
What is Parametric Insurance?
Parametric insurance is event-driven, meaning that it pays out when a predefined event occurs using an escalating payout structure. This approach eliminates on-site loss adjustment, reduces uncertainty, and expedites the claims process.
- Event-based coverage for climate & emerging risks
- Complementary to insurance
- Utilizing data at its core
Parametric Products
Descartes Underwriting offers parametric insurance products for a wide range of climate and weather-related risks.
- Tropical Cyclone
- Earthquake
- Flood
- Tornado
- Wildfire
- Drought
- Excessive Rain
- Frost
- Hail
- Crop Yield
- Wind Yield
- Extreme Temperatures
- Low/High River Level Volatility
Resources
Supporting Resources
Detailed Comparison
Payout Speed
Trigger Accuracy
Integration Capability
Risk Consulting, Brokerage, and Claims Advocacy Services
MarshCompany Information
Marsh is a global leader in insurance broking and risk management, bringing global, national, and industry-specific solutions to a wide range of clients.
Keywords
Description
Marsh is a global professional services firm that specializes in insurance brokerage and risk management. The firm helps clients navigate complex risks and embrace their opportunities.
What They Do
Marsh provides insurance brokerage and risk management services to clients across various industries worldwide.
Who They Serve
They serve a wide range of clients including businesses, governments, and organizations across multiple sectors.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Navigation Links
Summary
A parametric marine and air cargo delay insurance that complements traditional cargo policies. Uses AI-assisted algorithms to quote quickly and pays claims based on predefined delay triggers, with typical settlement within about 14 days after confirmation of loss.
Key Features
- Risk consulting
- Insurance brokerage
- Claims advocacy
- Data-driven risk analysis
- Technology-enabled solutions
- Analytics for risk management
Key Benefits
- Better quantification and management of risk
- Access to global expertise and industry-specific knowledge
- Support in navigating complex risk environments
- Leverage of data, technology, and analytics for informed decision-making
Who Is It For
- Organizations and businesses across a wide range of industries
- Clients seeking to manage, transfer, or mitigate risk
- Companies requiring support with insurance placement and claims management
Services
Our consulting, brokerage, and claims advocacy services leverage data, technology, and analytics to help you better quantify and manage risk. Explore our global expertise below. Please note that service availability varies by location. Contact a Marsh advisor for support in your region.
Resources
Supporting Resources
Detailed Comparison
Payout Speed
Trigger Accuracy
Integration Capability
Reinsurance Solutions for Insurers
Munich Re (US)Company Information
Munich Re is a leading global provider of reinsurance, primary insurance, and insurance-related risk solutions.
Keywords
Description
Munich Re is one of the world’s leading reinsurers and risk solutions providers, helping clients manage their risks and develop tailored insurance solutions.
What They Do
Provide risk solutions and reinsurance services globally.
Who They Serve
Insurers, industry clients, and investors.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Summary
Munich Re US structures parametric covers with transparent, third‑party data triggers for fast liquidity and complements to traditional insurance. Offerings include turnkey implementations and are targeted to industries where weather disrupts logistics, transportation, and supplier operations.
Key Features
- Traditional reinsurance: Risk XL, Cat XL, stop loss, quota share
- Innovative risk assumption and transfer solutions
- Comprehensive underwriting and risk management expertise
- Consulting services for primary insurers
- Digital tools and platforms for product customization and efficiency
- Specialty reinsurance for agriculture, aviation, contingency, and marine
- Retroactive and prospective structured reinsurance solutions
- Cyber risk solutions including legal, technical, and product design support
- Data analytics and digital underwriting platforms
Key Benefits
- Access to global expertise and local market knowledge
- Tailor-made reinsurance solutions for complex and emerging risks
- Support across the entire insurance value chain
- Financial strength and reliability
- Early identification of trends and expansion of insurability boundaries
- Competitive advantage through advanced risk assessment and innovation
Who Is It For
- Property and casualty insurers
- Primary insurers seeking risk transfer and capital optimization
- Insurers of agricultural, infrastructure, specialty, and cyber risks
- Businesses and investors involved in large-scale or innovative projects
- Insurers seeking consulting, data analytics, or digitalization support
Reinsurance Property/Casualty
Munich Re is a full-service provider in risk assumption, offering both traditional and innovative reinsurance solutions. Property and casualty experts provide tailor-made solutions such as Risk XL, Cat XL, stop loss, and quota share.
- Full range of traditional and innovative reinsurance
- Tailor-made solutions for complex risks
- Support along the entire value chain
Agriculture
Tailored agricultural reinsurance solutions for clients worldwide, leveraging financial strength, expertise, and global experience.
- Solutions go beyond standard reinsurance
- Support for insurers of agricultural risks
Consulting
Global Consulting provides advisory services along the insurance value chain, helping clients drive performance and develop business models for existing and emerging risks.
- Continuous dialogue and collaboration
- Advisory for performance and business model development
Infrastructure
Support for insurers in distributing risk for large-scale, innovative infrastructure projects, providing security and expertise.
- Risk sharing for groundbreaking ventures
- Support with know-how and services
Natural Catastrophes
Reinsurance solutions for rising loss potentials from natural disasters, with tools and databases for risk assessment and mitigation.
- Coverage for storms, floods, earthquakes
- Support for risk mitigation and capital efficiency
Specialty Reinsurance
Premium reinsurance solutions for agriculture, aviation, contingency, and marine risks.
- Specialty reinsurance for various sectors
- Partnerships to add value and grow business
Retroactive Reinsurance
Solutions for primary insurers to optimize risk and capital, including technical reserves for ongoing and run-off business.
- Focus on technical reserves
- Solutions for ongoing and run-off business
Cyber
Comprehensive cyber risk solutions, including insurance, legal advice, technical risk assessment, and white-label product design.
- Coverage for cyber and data security risks
- Support beyond traditional insurance
Data Analytics
Digitalization and data analytics tools to help insurers tailor products and improve efficiency.
- Collaboration with technology companies
- Digital tools and platforms for efficiency and customization
Resources
Supporting Resources
Detailed Comparison
Payout Speed
Trigger Accuracy
Integration Capability
Parametric Solutions
Swiss Re Corporate SolutionsCompany Information
Description
Swiss Re Corporate Solutions is the commercial insurance arm of the Swiss Re Group, providing comprehensive risk coverage through its expertise in traditional and alternative risk transfer solutions.
What They Do
Provide commercial insurance and risk management solutions.
Who They Serve
Businesses looking for integrated risk management and insurance solutions.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Summary
Swiss Re Corporate Solutions offers parametric solutions and NDBI coverage that provide fast liquidity for events that disrupt operations without physical damage. Products like QUAKE use objective data (e.g., USGS ShakeMaps) and typically pay within ~30 days.
Key Features
- Pre-agreed loss amounts and payout triggers
- Tailored insurance for a wide range of perils (e.g., earthquakes, hurricanes, hail, water-level events)
- Expert support to design solutions for unique risks
- Transparent and objective parameters for claims
Key Benefits
- Faster claims process due to transparent trigger and payout mechanisms
- Customizable to specific risk profiles and exposures
- Certainty and simplicity: payout is made once pre-defined thresholds are met
- Reduces financial burdens post-disaster
- Can address gaps where traditional insurance is unavailable or inefficient
Who Is It For
- Businesses exposed to natural catastrophes and weather-related perils
- Organizations seeking alternatives to traditional indemnity-based insurance
- Industries with cash flow sensitivity to natural events (e.g., construction, renewable energy, agriculture, infrastructure, etc.)
What we do
Swiss Re Corporate Solutions tailors parametric insurance solutions to unique risks, providing insurance to mitigate financial fallout when pre-agreed parameters are met. Experts work with clients to find the best fit for their risk.
Why go parametric?
Parametric insurance offers a transparent, fast, and efficient alternative to traditional indemnity-based insurance, especially for natural catastrophe exposures.
- Faster claims process
- Certainty and transparency
- Customizable to specific risks
Our solutions
Swiss Re offers several parametric insurance products for different perils, including water-level, earthquake, tropical cyclone, and hail.
- FLOW: Water-Level Insurance
- QUAKE: Parametric insurance for earthquakes
- STORM: Parametric insurance for tropical cyclones
- HAIL: Hail Damage Insurance
Industry recognition
Parametric Insurance Solutions have received industry awards, including Inside P&C Honors Awards for Parametric HAIL™ in the US and Underwriting Initiative of the Year at Insurance Asia News' Awards.
- Inside P&C Honors Awards for Parametric HAIL™ in the US
- Underwriting Initiative of the Year at Insurance Asia News' Awards
Brochures
Downloadable brochures and case studies on parametric insurance solutions for various perils.
- Parametric STORM, QUAKE and HAIL: STORM example
- Parametric STORM, QUAKE and HAIL: QUAKE example
- Parametric QUAKE: a customer story
- Parametric STORM, QUAKE and HAIL: HAIL example
- Innovating Together: Customer Case Studies beyond traditional insurance solutions
- Speed, simplicity, and certainty: parametric insurance in action
Resources
Supporting Resources
Detailed Comparison
Payout Speed
Trigger Accuracy
Integration Capability
Our Ranking Methodology
How we rank these offerings
We ranked these Parametric Supply Insurance Firms in USA using a weighted scoring formula: Payout Speed (40%), Trigger Accuracy (35%), Integration Capability (25%). N/A values receive 0 points. Parametric Cargo Delay Insurance (otonomi.ai) scored highest due to its rapid automated payouts, best-in-class trigger accuracy via decentralized oracles, and strong integration flexibility. Companies with slower payout, less advanced triggers, or less flexible integration scored lower.
Ranking Criteria Weights:
Frequently Asked Questions
- What are the typical costs and pricing models for parametric supply insurance in the USA?
- Parametric insurance in the supply chain sector typically follows a simple, transparent pricing model, which is often determined by the predefined triggers and coverage limits. For instance, the Parametric Cargo Delay Insurance program by Otonomi uses AI to streamline quoting, resulting in competitive pricing compared to traditional models. Additionally, the lack of adjusters and swift settlement, such as Munich Re US's parametric covers offering liquidity quickly, means reduced administration costs, which may lead to more attractive premiums for businesses.
- What are the key selection criteria and considerations for choosing a parametric supply insurance provider?
- When selecting a provider, factors such as the simplicity of the trigger, coverage limits, and claims settlement speed are vital. Munich Re US and Swiss Re Corporate Solutions emphasize the use of third-party data and objective triggers like USGS ShakeMaps, ensuring transparency and reliability. Additionally, potential users should consider technological integration capabilities as seen in Otonomi’s automation processes, which may enhance efficiency and reduce human error.
- What industry standards and compliance elements are crucial for parametric supply insurance in the USA?
- Compliance with state licensing requirements and adoption of industry-standard data sources for triggers are critical. For instance, Otonomi's program is licensed in multiple states, ensuring coverage legality and credibility. Companies like Swiss Re Corporate Solutions also adopt standardized, publicly available data, which is essential for maintaining transparency and trust within the market.
- What are the common implementation challenges for parametric supply insurance, and how can they be addressed?
- Challenges include ensuring accurate data collection and technology integration. Risk Consulting's use of AI-assisted algorithms represents a solution to enhance quoting accuracy and speed. Additionally, bespoke technological systems like those seen in Munich Re US's turnkey implementations can mitigate integration challenges by offering ready-to-use systems that easily adapt to existing processes.
- How does parametric insurance deliver ROI and add value to businesses?
- Parametric insurance offers rapid payout times, typically within 14 to 30 days, as demonstrated by companies like Risk Consulting and Swiss Re Corporate Solutions. This quick liquidity can significantly bolster a business's financial resilience during disruptions, such as delays or weather events, without the need for physical damage assessments. The transparency and reduced administrative burden also contribute to cost savings, enhancing the overall return on investment.
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