Mark Groenheide is at the forefront of the parametric insurance industry.

MIAMI, FL / ACCESS Newswire / July 3, 2025 / As severe weather risks continue to intensify across the United States, the (re)insurance industry is turning to solutions that deliver faster, more predictable outcomes. Among the most impactful innovations is parametric (re)insurance-a model that ties payout directly to the occurrence and severity of defined natural events. Mark Groenheide, co-founder of NormanMax, the world's first Lloyd's of London parametric-only syndicate, has been at the forefront of bringing this approach into the U.S. market.

Through NormanMax, Groenheide has helped structure programs that are designed not only to respond quickly, but to do so with transparency and precision. His focus is on delivering risk transfer solutions that meet the operational needs of policyholders in moments of crisis-when time and liquidity are most critical.

The Value of Event-Driven Protection

Unlike traditional indemnity models, which rely on post-loss assessment and claims adjustment, parametric (re)insurance pays out based on predefined event thresholds-such as wind speed, rainfall accumulation, or seismic magnitude-measured by trusted third-party data sources. The level of indemnity available is tied to the severity of the event, offering a rules-based structure that improves clarity and accelerates recovery timelines.

Groenheide has been a leader in advocating for parametric models that address U.S.-based exposures such as hurricanes, floods, and infrastructure disruption. His work through NormanMax has focused on delivering these capabilities across sectors ranging from public entities to commercial portfolios and captive programs.

Proven Response: Hurricane Milton, 2024

One of the most compelling demonstrations of the model's effectiveness came during Hurricane Milton, which made landfall on Florida's Gulf Coast in October 2024. Under programs developed through NormanMax, parametric policies triggered based on wind speed thresholds, resulting in payouts to multiple insured parties.

These payouts were executed within 30 days of landfall, based on third-party verification of storm data, and were used to support continuity of operations, emergency response efforts, and business recovery. The event marked one of the first public demonstrations of NormanMax's capabilities in the U.S. and underscored Groenheide's strategic intent: to close the gap between disaster and response.

"This model was built to deliver capital when it matters most," Groenheide said following the event. "We designed it to respond to measurable conditions with clarity, speed, and accountability-and that's exactly what happened."

Infrastructure Built for U.S. Scale

Groenheide's approach to parametric development emphasizes not only innovation but also infrastructure. NormanMax's U.S.-focused programs utilize high-quality, auditable data from sources such as NHC and other independent providers, ensuring that event triggers are both scientifically valid and legally defensible.

He has also worked to establish frameworks that integrate parametric solutions into broader (re)insurance and reinsurance portfolios, allowing carriers and MGAs to offer hybrid risk programs tailored to client needs.

Market Education and Industry Engagement

Groenheide is active in supporting market education and adoption. Through direct engagement with brokers, underwriters, and reinsurers, he has helped drive understanding of how parametric models function, what risks they are best suited to address, and how they can be deployed responsibly in regulated environments.

He regularly participates in industry panels, underwriting workshops, and executive briefings, focusing on practical implementation and capital efficiency.

The Road Ahead

As climate-driven volatility continues to strain traditional coverage structures, parametric (re)insurance is becoming a vital component of the modern risk strategy. Mark Groenheide's leadership, both through his past work at NormanMax and his advisory work across the U.S. market, is helping define how this model is brought to scale with discipline and credibility.

Hurricane Milton was not just a successful test of a new tool-it was a signal that parametric (re)insurance has arrived as a reliable solution for American policyholders seeking greater speed, certainty, and control over disaster recovery.

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SOURCE: Mark Groenheide