Parametric
Parametric Insurance provides coverage based on predefined triggers, such as weather events, natural catastrophes, or other measurable conditions, rather than actual measured losses.
Coverage responds when an agreed parameter is met, such as wind speed, rainfall level, temperature variation, or earthquake magnitude, allowing for rapid financial payment without the need for traditional claims adjustment or physical damage assessment.
Coverage typically includes fixed payments designed to support liquidity, operational continuity, and immediate response efforts following disruptive events.
Coverage may also include protection for:
Natural catastrophe and weather-related events: Coverage triggered by hurricanes, earthquakes, floods, wildfires, droughts, extreme temperatures, or other measurable environmental conditions.
Business interruption and revenue stabilization: Helps mitigate financial losses resulting from operational disruption, reduced production, or interruption to normal business activity.
Supply chain and transportation disruption: Coverage for delays, closures, or interruptions affecting suppliers, logistics networks, ports, or transportation infrastructure.
Rapid liquidity and recovery support: Provides fast access to funds that can be used for emergency response, operational continuity, recovery efforts, or other critical financial needs.
Non-damage business interruption exposures: Protection may respond even when physical property damage has not occurred but operations are impacted by triggering events.
Parametric Insurance is designed to help organizations strengthen financial resilience, accelerate recovery, and maintain operational continuity when disruptive events impact business operations.