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Master’s in Parametric Insurance for Climate and Energy Engineering

Online master's programme of 1,900 hours in Parametric Insurance Engineering for Climate and Energy, structured in 12 modules covering parametric principles, index data and design, extreme value statistics, climate risk in renewable energy, parametric energy covers, weather derivatives, agriculture and development, pricing and capital, technology and operations, and regulation and contracts, with an assigned technical tutor.

Duration1900 h
ModeOnline
LanguageEnglish
Start datesSet by the faculty
AwardSEIUM Institute diploma
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Learning outcomes

What you will be able to do

01

Understand the principles and limitations of parametric insurance.

02

Manage weather and climate data sources for indices.

03

Design indices and payout structures that minimise basis risk.

04

Apply extreme value statistics to climate variables.

05

Structure parametric covers for energy projects.

06

Value weather derivatives and parametric covers.

07

Analyse the regulatory and contractual framework of these solutions.

Profile

Who it's for

  • Parametric insurance structurers.
  • Climate risk analysts in insurance and reinsurance.
  • Energy risk managers in renewable generation and trading.
  • Actuaries developing new products.
  • Weather derivatives analysts.
  • Disaster risk financing consultants.
  • Engineering or science graduates aiming to enter renewable energy.
Standards & tools

What you'll work with

  • Law 50/1980 (Spanish Insurance Contract Law)
  • Directive 2009/138/EC (Solvency II)
  • Regulation (EU) 648/2012 (OTC derivatives, EMIR)
  • Directive 2014/65/EU (markets in financial instruments, MiFID II)
  • ISDA 2002 Master Agreement
  • Directive (EU) 2016/97 (Insurance Distribution Directive, IDD)
  • IFRS 9 (financial instruments)
  • Python (xarray, scipy)
  • R (extRemes)
  • Copernicus Climate Data Store
  • WindPRO
  • PVsyst
Syllabus

12 modules · 1900 h

  1. 1.1Indemnity versus index-based payment
  2. 1.2Components: index, trigger and payout
  3. 1.3Advantages and limitations
  4. 1.4Basis risk
  5. 1.5Index types: physical, modelled and loss-based
  6. 1.6Use cases in climate and energy
  7. 1.7Independent calculation agents
  8. 1.8Contractual framework
  9. 1.9History and the parametric market
  10. 1.10Case study: analysis of a parametric hurricane policy
  1. 2.1Weather stations
  2. 2.2ERA5 reanalysis data
  3. 2.3Satellite precipitation
  4. 2.4Wind speed and models
  5. 2.5Solar radiation
  6. 2.6River flows and levels
  7. 2.7Seismic data
  8. 2.8Quality, latency and continuity
  9. 2.9Third-party sources and licences
  10. 2.10Lab: extracting ERA5 time series
  1. 3.1Choice of variable and index
  2. 3.2Spatial and temporal resolution
  3. 3.3Composite indices
  4. 3.4Stepped and linear payout structures
  5. 3.5Thresholds and exits
  6. 3.6Correlation with actual losses
  7. 3.7Minimising basis risk
  8. 3.8Design optimisation
  9. 3.9Back-testing
  10. 3.10Practical exercise: designing a rainfall index for flooding
  1. 4.1Extreme value distributions
  2. 4.2Block maxima method
  3. 4.3Peaks over threshold
  4. 4.4Return periods
  5. 4.5Spatial dependence of extremes
  6. 4.6Copulas
  7. 4.7Climate non-stationarity
  8. 4.8Uncertainty in estimation
  9. 4.9Stochastic simulation of indices
  10. 4.10Lab: GEV fit to wind speeds
  1. 5.1Variability of the wind resource
  2. 5.2Variability of solar radiation
  3. 5.3Hydrology and hydroelectric production
  4. 5.4Volume and price risk
  5. 5.5Correlation between production and price
  6. 5.6P50 and P90 production curves
  7. 5.7PPA contracts and profile risk
  8. 5.8Curtailment
  9. 5.9Weather and energy forecasting
  10. 5.10Case study: volume risk of a wind farm
  1. 6.1Wind production covers
  2. 6.2Solar irradiation covers
  3. 6.3Hydrological (hydraulicity) covers
  4. 6.4Temperature and demand covers
  5. 6.5Proxy hedges and revenue covers
  6. 6.6Combination with PPAs
  7. 6.7Covers for storage
  8. 6.8Extreme event covers for grids
  9. 6.9Structuring the cover
  10. 6.10Practical exercise: irradiation cover for a solar plant
  1. 7.1The weather derivatives market
  2. 7.2Heating and cooling degree days
  3. 7.3Weather futures and options
  4. 7.4Valuation by burn analysis
  5. 7.5Valuation by simulation
  6. 7.6Valuation by index models
  7. 7.7Differences between insurance and derivatives
  8. 7.8Counterparties and credit risk
  9. 7.9Hedge accounting
  10. 7.10Lab: valuing a degree-day option
  1. 8.1Agricultural index insurance
  2. 8.2Vegetation indices
  3. 8.3Drought indices
  4. 8.4Microinsurance in developing countries
  5. 8.5Regional risk pools
  6. 8.6Anticipatory financing
  7. 8.7Protection of public infrastructure
  8. 8.8Sovereign catastrophe funds
  9. 8.9Impact evaluation
  10. 8.10Case study: drought insurance for smallholder farmers
  1. 9.1Expected loss and risk load
  2. 9.2Cost of capital
  3. 9.3Market price and capacity
  4. 9.4Reinsurance of parametric portfolios
  5. 9.5Accumulation and correlation
  6. 9.6Capital under Solvency II
  7. 9.7Transfer to capital markets
  8. 9.8Profitability for the insurer
  9. 9.9Comparison with alternatives
  10. 9.10Practical exercise: pricing a wind cover
  1. 10.1Calculation agents
  2. 10.2Payment automation
  3. 10.3Smart contracts and oracles
  4. 10.4Parametric insurance platforms
  5. 10.5Embedded insurance
  6. 10.6Data infrastructure
  7. 10.7Event verification
  8. 10.8Transparency for the policyholder
  9. 10.9Platform cybersecurity
  10. 10.10Workshop: automated event-payment workflow
  1. 11.1Insurable interest and parametrics
  2. 11.2Distinguishing insurance from derivatives
  3. 11.3EU derivatives regulation
  4. 11.4Spanish Insurance Contract Law and parametric policies
  5. 11.5Consumer protection
  6. 11.6Disclosure of basis risk
  7. 11.7Supervision and authorisations
  8. 11.8Taxation
  9. 11.9ISDA master agreements
  10. 11.10Case study: contractual review of a parametric cover
  1. 12.1Selection of the climate or energy risk
  2. 12.2Analysis of historical data
  3. 12.3Index design
  4. 12.4Statistical modelling
  5. 12.5Payout structuring
  6. 12.6Basis risk analysis
  7. 12.7Pricing
  8. 12.8Regulatory analysis
  9. 12.9Master's Thesis report
  10. 12.10Master's Thesis: defence before a panel
Methodology, software & labs

How you'll learn

100% online training on the SEIUM campus, with downloadable material, recorded classes and an assigned technical tutor. No fixed timetables: you progress at your own pace within the intake, so you can combine it with your job.

Each module combines theory, guided reading of the original standard and applied exercises. The working software is Python (xarray, scipy), R (extRemes), Copernicus Climate Data Store, WindPRO and PVsyst, in free, academic or evaluation versions. Testing is studied through real procedures: designing weather indices for parametric covers, basis risk analysis with historical data and valuation of weather derivatives. Assessment is continuous by module, plus the final Master's Thesis.

Standards covered: Law 50/1980, Directive 2009/138/EC (Solvency II), Regulation (EU) 648/2012 (EMIR), Directive 2014/65/EU (MiFID II), ISDA 2002 Master Agreement, Directive (EU) 2016/97 (IDD) and IFRS 9.

Assigned technical tutor:every module ends with a deliverable that your tutor marks individually.
Standards-based learning:guided reading of Law 50/1980, Solvency II and EMIR applied to real cases, not as a theoretical annex.
Industry software:Python (xarray, scipy), R (extRemes), Copernicus Climate Data Store, WindPRO and PVsyst, in free, academic or evaluation versions.
Master's Thesis with defence:A parametric cover for a climate or energy risk, from index design and statistical modelling to payout structure, basis risk, pricing and regulatory analysis, defended before a panel.
Flexible format:100% online, no fixed timetables, compatible with full-time work.
Capstone project

Build it end to end

Your final project follows the real engineering workflow, step by step, reviewed by your tutor.

Historical data analysis
Extract and analyse ERA5 and station series for the selected climate or energy risk.
Index design
Design the index and its trigger, minimising basis risk through back-testing.
Extreme value modelling
Fit extreme value distributions and simulate the index stochastically.
Payout and pricing
Structure the payout and price the cover including risk load and cost of capital.
Master's Thesis
Complete parametric cover with regulatory analysis, defended before a panel.
Career opportunities

Where this takes you

Parametric insurance structurerClimate risk analystEnergy risk managerNew products actuaryWeather derivatives analystDisaster risk financing consultant
Admissions & scholarships

Requirements

  • A university degree in engineering, science or architecture, or equivalent demonstrable professional experience.
  • An internet connection and a computer capable of running the programme's software.
  • English sufficient to read technical standards.

Ready to start?

Send your application today. Our admissions team replies within 72 hours with your study plan and funding options.

Apply now Scholarships
FAQ

Frequently asked questions

The programme totals 1,900 hours over 12–14 months. You set your own pace within each intake, and your tutor helps you plan the workload around your job.

You work with Python (xarray, scipy), R (extRemes), Copernicus Climate Data Store, WindPRO and PVsyst, using free, academic or evaluation versions. Your tutor indicates the free alternative wherever one exists.

A SEIUM Institute diploma, awarded on passing the continuous assessment and the Master's Thesis. It is SEIUM's own qualification, not an official state degree; its recognition depends on the programme completed and the regulations of each country.

Yes. Modules passed in a course or postgraduate diploma in the same area are recognised in the higher programme. Ask about the recognition policy when you enrol.

A university degree in engineering, science or architecture (or equivalent professional experience), a computer able to run the programme's software and English sufficient to read technical standards.

Start dates are set by SEIUM's faculty for each intake. Our admissions team will confirm the next available date when you apply.

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