A home damaged by Hurricane Irma in 2017. Parametric insurance pays claims based on the occurrence of a triggering event. The claims amount is based on the magnitude of the event. Photo: VINO/File

Hyperion Risk Solutions Limited is offering a new product, Parametric Windstorm Insurance, where clients purchase whatever limit of coverage they like, aligning with their largest probable loss as opposed to insuring for the full value. Photo: Hyperion Risk Solutions Limited

Mr Simon W. Cross of Hyperion Risk Solutions Limited said Parametric Windstorm Insurance is a specific hurricane product. Photo: Hyperion Risk Solutions Limited

An example of the payment structure which can be tailored according to the clients needs. Photo: Hyperion Risk Solutions Limited

Parametric Windstorm Insurance is a new line of insurance being offered by Hyperion Risk Solutions Limited, a local insurance broker, regulated by the BVI Financial Services Commission. Hyperion is a specialist in providing inventive insurance solutions in the VI and other jurisdictions in the Caribbean region.

Parametric insurance pays claims based on the occurrence of a triggering event. The claims amount is based on the magnitude of the event.

Mr Simon W. Cross of Hyperion Risk Solutions Limited told Virgin Islands News Online (VINO) during an interview on Tuesday, October 7, 2025, that Parametric Windstorm Insurance is different from traditional insurance.

Normal insurance policies require you to insure for all perils all at the same time, such as hurricanes, earthquakes, and fires.

“So at the moment, people have to buy a package policy that covers a range of perils…And then you’re required to procure a policy that aligns 100% to the recommended rebuild cost.”

Changing the Insurance Buying Process


Mr Cross said Parametric Windstorm Insurance is a game-changer as it allows clients to purchase a limit of coverage that reflects their largest probable loss from a hurricane.

“Rather than insuring for Hurricane to the full value, you’re free to select a limit that better fits your largest probable loss; it has the potential of saving people huge sums of money.

He added that this insurance policy is event-triggered, and clients can use the funds paid out to them towards any expense incurred or they stand to incur as a result of a hurricane.

Lloyd’s, the world's leading specialist insurance and reinsurance market, provides the security behind these policies.

Mr Cross also assured that with this policy, there is no underinsurance, something that happens with normal insurance.

No Deductible & No Loss Adjusting

“There's no deductible,” Mr Cross said, as with traditional insurance offerings in the Caribbean region.

He also said there is a payout table with different tiers of wind speed and accompanying payments.

“The higher the wind speed, the higher the payment made to you.”

Mr Cross explained that the location of the property or the material from which it is built is not a deciding factor in providing coverage to clients.

“This pays no attention to the construction of the building, or its proximity to the sea.”

A third-party atmospheric data specialist is used. Live data is fed to insurers when a storm hits to determine the maximum wind speed sustained at a particular location.

Payment within 30 days

“Once any of the policyholders' triggers are met…payment is made automatically to us. And then we make payment to our clients within 30 days.”

Interested persons can contact Hyperion Risk Solutions Ltd through Mr Cross at simon.cross@hyperion-risk.com and can expect a response with rates and more information within 48 hours.

“Whilst we have clients requesting parametric limits into the millions, we’re also assisting some clients with limits as low as $100,000 for a premium in the region of $5,000. As such, we consider this a major game changer that’s not only incredibly innovative, but affordable too,” he assured.

"When you consider hurricane deductibles are ordinarily at least 2% (sometimes 3,5, or even 10%) of the total sum insured, this policy can provide not only a significant premium saving, but saves thousands in deductible contributions too."

For those who may want to have coverage for other perils, Mr Cross said that is also offered.

“We have a separate policy that we can offer that covers all of the usual perils, but carves out wind. The combination of the two policies can be significantly cheaper than what a traditional policy would cost.”

'Greater flexibility & liquidity'

“In summary, parametric insurance can provide far greater flexibility and liquidity in [the] wake of specifically covered events, for both private property owners and commercial businesses. However, it’s important to remember that parametric insurance is not a direct alternative to standard property insurance.”

Hyperion always recommends that insureds seek to purchase comprehensive insurance coverage, which protects against all perils, to 100% of the reinstatement cost of their property.