Parametric Fuel & Freight Price Insurance
Paratus offers the world’s first parametric fuel & freight insurance policies to protect your business from fuel & freight price risk.
Our straightforward policies automatically settle by paying a predefined claim amount and remove the need for costly ‘in-house’ trading capabilities, or the use of complex, traditional hedging products.
Transparently priced in US dollars per day, our insurance policies automatically pay a cash settlement when the average fuel price exceeds the predetermined trigger level.
Why Parametric Insurance?
LOW COST
The Paratus policy is inexpensive, representing a minor proportion of the cost of purchasing physical fuel or freight, across all industries.
TAX DEDUCTIBLE
The cost of the policy will often be tax deductible as an operating cost, saving you money in the short and long term.
TRUSTWORTHY
Policies are distributed through FCA registered & regulated brokers. Risks are transferred to Lloyd’s underwriters.
EFFICIENT
We commit to pay quickly, once the policyholder has provided valid evidence of fuel or freight purchase for the voyage.
TRANSPARENT
Risk is clearly defined for a fixed cost at the start of your policy, meaning no volatility on the balance sheet.
ACCESSIBLE
Policies can be used regardless of credit rating, without complicated valuation and accounting methods, or knowledge of derivative instruments.
AUTONOMOUS
You have complete control over your protection strategy. There is no need for, and no dependence on, particular relationships with investment banks.
SECURE
In the event of fuel or freight price collapse, there are no margin calls, no liquidity stress. No need to fear hidden risks.
PROTECTION AGAINST UNCERTAINTY
Current events may signal the beginning of the end for energy consumers using financial derivatives to hedge energy exposure. The repercussions of the global lockdown, combined with the losses amassed in the 2008 financial crisis, have caused many industrial energy consumers to lose trust in traditional risk management products. The risk posed by COVID-19 now means that every industrial energy consumer needs a product that protects their balance sheet in a way that is transparent, easy to understand, cost-effective and trustworthy.
Industrial consumers of energy need Parametric Fuel Price Insurance.