For Business
Parametric
Parametric insurance provides a pre-agreed payout when a specific event occurs—based on measurable data—rather than on actual losses. It is commonly used for natural disasters, weather events, and other quantifiable risks.
Instead of going through a traditional claims process, the policy pays out automatically once the trigger conditions (like wind speed, rainfall level, or earthquake magnitude) are met.
How it Works
A trigger event is agreed upfront (e.g., wind speed exceeding 150 km/h, or rainfall below a certain level).
What Happens
If the trigger occurs, the insurer pays the pre-set sum immediately — without lengthy claims investigations.
Why it Matters
This ensures speed of payment, simplicity, and certainty, especially useful for risks that are hard to quantify or where businesses need cash flow quickly after an event.
How Parametric Insurance Works
(Trigger-Based Insurance)
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Parametric insurance ensures SPEED, TRANSPARENCY, and CERTAINTY. If the data proves the trigger, you get paid — fast, fair, and automatic.
Key Advantages
Faster Payouts
Immediate compensation based on predefined triggers—no lengthy claims investigations.
Transparency
Clear terms and triggers agreed upon in advance, reducing disputes over coverage.
Customisable Coverage
Can be tailored to specific risks like floods, droughts, or pandemics.
Supports Risk Management
Helps businesses recover quickly from disruptions, especially in sectors like agriculture, energy, and tourism.
Fills Coverage Gaps
Complements traditional insurance by covering risks that are hard to assess or indemnify.