Parametric insurance is a great option for conflict-torn countries, Price Forbes Re executive Tom Johansmeyer said at the Bermuda Risk Summit 2026.

In a panel on the Ukraine war, Mr Johansmeyer, global head of index classes at Price Forbes Re and Matt Flug, counsel at DLA Piper, spoke about this non-traditional form of cover that pays out at a pre-specified threshold rather than after a damage assessment.

Insureds can get their money quicker under this system and begin to rebuild or make repairs sooner.

“It is great for reinvigorating a conflict-affected economy,” Mr Johansmeyer said. “For example, if someone needs to buy farm equipment so they can rebuild their agricultural sector, we can embed a rainfall and temperature parametric into that loan. If they have a bad yield due to weather conditions, their loan will be protected.”

He said such a person would struggle trying to get regular insurance because of war exclusions.

“You would have insurers probably fearful of the environment deciding it is not worth engaging,” Mr Johansmeyer said. “Parametric is a good first step in an uncertain environment, because the product itself is generally more certain.”

Mr Flug said the Ukraine conflict continues, but life goes on.

“Businesses are continuing as normal, particularly in the western Ukraine,” he said. “Universities are still open and the subways are running. The reconstruction era is something on the minds of many companies.”

He said some large insurance companies are already having discussions about what they can do when peace comes.

It is not yet known how the war will end — whether by treaty or armistice.

“Having these discussions now about how to free up capital and rebuild goes a long way,” Mr Flug said. “This can be a longstanding relationship. If we look pre-conflict, Ukraine had a robust economy, particularly in the agricultural space. A lot of back office technology for western companies existed there.”