Parametric insurance solutions

We live in an uncertain world where a myriad of forces and risks can impact businesses and society at large. Buying traditional indemnity-based insurance to protect against some of those risks is not always efficient. That's why we've designed parametric protection insurance with simple trigger and payout mechanisms to speed up the claims payment process. Our innovative parametric solutions use customised formulas, so that once a pre-defined threshold is hit, we pay out.

With conventional insurance, typically a premium is paid in return for a promise to cover a valid loss incurred due to an incident or named peril. Payment is made only after an actual loss assessment and investigation, with the goal to put the insured back in the position they were prior to the event.

Parametric insurance, on the other hand, is a type of insurance that provides the insured with a pre-determined payout that is based upon physical parameters of a concrete event. In other words, instead of insuring customers based on the magnitude of the actual losses incurred, parametric insurance solutions insure customers based on the intensity or magnitude of the actual event (e.g., the shake intensity of an earthquake). The payout itself depends on the occurrence of such a pre-defined triggering event. Such parametric risk transfer can serve a number of client needs and is commonly applied to gain protection from the financial impact of, for example, earthquakes, tropical cyclones, too much or too little rain, extreme temperatures, flooding, or crop yields (and other applications in the agriculture sector). In principle, any trusted and reliably measurable index can be used to define a parametric insurance product.