KINGSTON, Jamaica— As Jamaica continues to feel the effects of increasingly severe weather events, BCMG Insurance Brokers has launched a new parametric insurance product designed to close a long-standing gap in the local insurance market.

According to BCMG in a media release on Friday, the offering provides policyholders with faster access to funds following disasters, while also helping to reduce overall insurance costs.

William Craig, chief executive officer of BCMG Insurance Brokers, said the launch reflects lessons learned from recent hurricane seasons.

“There is a clear gap between how quickly people need financial support after a disaster and how long traditional insurance claims can take to settle,” he said.

“Parametric insurance helps bridge that gap by getting money into people’s hands quickly, sometimes within a month, so recovery is not stalled by paperwork,” he continued.

Craig noted that the liquidity provided by parametric cover can be critical in the immediate aftermath of a storm. “That cash can be used to cover deductibles, repair items that are not insured, or simply keep a business afloat while normal operations resume,” he added.

According to the company, Parametric insurance differs from traditional cover in one fundamental way. Instead of assessing physical damage after an event, payouts are triggered automatically once pre-agreed conditions are met. These conditions may include wind speed, rainfall levels or seismic activity recorded within a defined area.

Ian Miller, chief technical officer at BCMG, explained that the product has been structured with simplicity and predictability in mind.

Ian Miller, Chief Technical Officer of BCMG Insurance Brokers

“Many Jamaicans are underinsured, not because they do not value protection, but because traditional insurance can feel slow, complicated or too expensive,” he said. “Parametric insurance changes that. You buy a cover tied to a clear trigger and if that trigger is met, you get paid. It removes uncertainty.”

The company said a parametric wind policy might pay out if wind speeds exceed a specific threshold within a defined distance of a property. Once independent data confirms that condition has been met, the payout is triggered automatically, without inspections, loss adjusters or negotiations.

It said independent data sources are central to the model. Weather information is verified using third-party providers such as national meteorological services, satellite data and internationally recognised agencies. This objectivity reduces disputes and increases transparency for policyholders.

“When payouts are based on trusted data, there is no debate about whether damage qualifies,” Craig said. “It gives clients peace of mind at a very stressful time.”

By reducing the administrative burden associated with traditional claims processes, BCMG said parametric insurance lowers operational costs. It said those efficiencies translate into more affordable premiums, while still delivering meaningful protection.

Miller noted that the flexibility of payouts is also important. “Because the funds are not tied to specific repair invoices, clients can use the money in whatever way best supports their recovery,” he said.

While parametric insurance does not assess actual damage, concerns about fairness are addressed through careful policy design. Triggers can be tailored to precise locations and risk levels, reducing what is known as basis risk, the gap between loss experienced and payout received.

BCMG emphasised that parametric insurance is not intended to replace traditional cover. Instead, it works alongside it to strengthen resilience.

“Parametric gives you speed, traditional insurance gives you full indemnity,” Craig said. “Together, they provide a more complete risk management solution.”