Parametric insurance pays claims automatically when predefined events occur, bypassing traditional loss assessment. This emerging approach uses technology like satellites and IoT sensors to cover previously uninsurable risks, offering faster payouts and greater predictability for businesses facing climate and operational...
Parametric insurance pays claims automatically when predefined triggers occur, bypassing traditional loss assessments. This emerging approach uses technology like satellites and IoT sensors to provide rapid payouts for disasters and climate risks, though challenges around basis risk and regulation persist...
Parametric insurance—paying out based on objective data triggers rather than loss assessments—is quietly transforming risk transfer. From agriculture to hospitality, this model delivers rapid, dispute-free liquidity, though basis risk and regulatory challenges remain. Its fusion with blockchain could make embedded,...
Parametric insurance uses automated triggers like earthquake magnitude or rainfall levels to pay claims instantly, bypassing traditional adjusters. This data-driven approach promises faster disaster recovery but raises questions about data accuracy and human judgment in risk management.
Parametric insurance—which pays automatically when triggers like wind speeds or rainfall thresholds are met—is transforming risk management beyond catastrophes. From supply chains to health policies, this data-driven approach offers speed but faces regulatory and basis risk challenges.