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Parametric Insurance Explainer
How This Alternative Coverage Model Can Help Insurers Defend Their Profits in the Face of Climate Crisis
This year’s devastating US hurricane season has put insurers’ climate change-related woes into the spotlight. Parametric insurance could help them more profitably cover risky areas by minimizing risks and pricing products with greater accuracy.
Key Question: How can parametric insurance help property and casualty (P&C) insurers protect their business continuity as climate-related risks intensify?
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Key Stat: The frequency of natural disasters in the US increased by 319% between 2003 and 2023, per the National Centers for Environmental Information (NCEI). The costs and losses associated with such events pose an existential threat to most P&C insurance lines.
authors
Maria Elm
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