AIR Parametric,Inc.

About AIR Parametric,Inc.

AIR Parametric, Inc. is a US-based general agency that provides parametric insurance products to protect businesses from the financial impact of extreme weather events. Founded by James Luce, who also serves as the company's CEO, the firm specializes in creating coverage for revenue shortfalls and expense overruns caused by events like heat spells, cold snaps, and excess rainfall that do not typically cause physical damage but can significantly affect a business's productivity or customer behavior. The company's business model is centered on developing and delivering these specialized insurance solutions through collaborations with brokers and reinsurance partners, such as Guy Carpenter and Liberty Mutual Reinsurance. AIR Parametric operates as a specialty insurance provider, leveraging its proprietary data platform, which utilizes advanced weather data, geospatial technology, machine learning, and AI to structure its products and pricing models. This technology enables the identification of precise, location-specific weather triggers for its policies. In October 2024, AIR Parametric launched its first major product, Milkshake™, designed to protect US dairy producers from revenue losses due to heat stress in their livestock. This product compensates farmers when the temperature-humidity index (THI) surpasses certain levels, impacting milk production. Milkshake™ was developed in consultation with dairy industry leaders and allows customers and their agents to select specific limits and events, featuring a simplified quote and bind process without a traditional claims adjustment. The claims process is automated, providing funds to policyholders in real time after a qualifying weather event is triggered. Headquartered in Nashua, AIR Parametric aims to address protection gaps in various industries within the commercial marketplace that are vulnerable to weather-related financial losses not covered by traditional insurance. The company plans to expand its distribution partners across the US and globally, developing new programs for a range of business segments affected by extreme weather.