Parametric insurance is transforming risk protection by paying automatically when predefined triggers occur, from droughts to supply chain disruptions. This revolution offers speed and certainty but faces regulatory and trust challenges.
Parametric insurance—using automated triggers for payouts—is transforming how we cover everything from hurricanes to supply chain breaks. This shift brings speed and clarity but raises questions about fairness and basis risk in an increasingly volatile world.
Parametric insurance is transforming risk management with automated payouts based on data triggers, but brings new complexities around basis risk, regulation, and the financialization of catastrophe coverage.
Parametric insurance—which pays out based on predefined triggers rather than loss assessments—is transforming risk management through technology and data. While facing regulatory and cultural hurdles, it offers new solutions for climate, supply chain, and emerging risks.
Parametric insurance—paying out automatically when specific triggers occur—is transforming risk management beyond traditional models. From supply chains to small businesses, this data-driven approach offers immediate liquidity without claims disputes, though questions about basis risk and regulation remain as this quiet...