Hello, welcome or welcome back to the INSTEC podcast.

Zoya here.

And this week we're joined by Matt Coleman, Chief Risk Officer at the Demix Group,

back behind the mic for another deep dive into one of the most

talked about corners of reinsurance, which is parametrics. In this conversation, we get an

update on Demics' parametric stop-loss reinsurance product and explore how it's responding to a year

of quite intensive convective storm activity across the US. Throughout the podcast, we also ask,

are parametric structures finally bridging the protection gap for mid-frequency events like hail,

tornadoes and straight line winds? And what is it about this moment in the market that's made

reinsurers willing to get behind secondary peril coverage again? So whether you're new to parametric insurance or already familiar and friendly with the world of

modelling, grab a tea or coffee and let's jump into the conversation.

Matt, brilliant to have you.

I think we're at one of those times of year where the weather where you are in Oakland, California, is probably similar to what it is doing in London. So for us, it all feels a bit hot. For you, it might feel just about right. But great to have you joining us. Thank you so much, Matthew. It's a pleasure to be here. I bet it's on a British podcast we talk about the weather. Now, we've had you a couple of times. You're on the 10th of March, 2023 on the podcast, and we did what I thought was a wonderful webinar with you in December 2024. I definitely refer people to that, talking about some of what you're doing and hearing from John D. Martini. But we're going to get a catch-up today because it's been quite interesting following the growth and success of DEMX. So we're really looking forward to discussing a little bit more of what's happened since we last caught up. Yeah, it's been been very active business-wise and of course weather-wise this year as well. Can't avoid talking about the weather. So a little bit introduction to Demex for those that aren't familiar with you or maybe

need an update.

So you are a reinsurance MGA.

You offer parametric stop loss in reinsurance.

And in particular, the product you're offering is called retained climate risk or RCR re.

And it's for secondary weather perils.

So particularly severe convective storm, SCS, for those who don't speak, insurance and climate, that's thunderstorms, hail, wind, tornadoes, and I think Durantios as well, if I'm correct. They're driving over $70 billion in global losses we talked about on the webinar and actually starting to exceed, in some cases, this traditional cat, and your model is using proprietary weather and claims data to trigger payments

automatically. on the webinar and actually starting to exceed in some cases traditional cat. And your model's

using proprietary weather and claims data to trigger payments automatically when lofts

thresholds are met, hence the parametric piece, and reducing the basis risk. Matt, your chief risk

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