Parametric Insurance

To explore a parametric solution, we require:

• Risk locations

• Nature of the business

• Key exposures

• Historical loss information

• Desired coverage or payout

• Preferred trigger, if known

• Existing insurance programme

• Protect your business differently

• Select the risk - Identify the event that could significantly affect your business.

• Set the trigger - Agree on a measurable parameter, such as rainfall level, wind speed or earthquake intensity.

• Set the payout - Agree on the payout amount or structure when the policy is arranged.

• Trigger reached - payment made

Once independent data confirms that the agreed trigger has been met, payment can be made in accordance with the policy terms, without the traditional loss-adjustment process.

Parametric solutions can be structured around events such as:

• Hurricanes and tropical storms

• Excessive rainfall

• Earthquakes

• Other measurable natural or weather-related events

The proceeds can help meet business interruption, emergency expenses, recovery costs, loss of revenue and other financial impacts, subject to policy terms.

Parametric Insurance may be suitable for:

• Hotels and tourism

• Agriculture

• Energy

• Construction

• Manufacturing

• Financial institutions

• Retail and distribution

• Transportation and logistics

• Public-sector entities

It can also complement an organisation’s existing property and business interruption insurance programme.