Parametric Insurance

Parametric insurance is a type of coverage that pays out automatically when specific, pre-defined conditions are met, such as a certain level of rainfall or wind speed. Unlike traditional insurance, which assesses damage afterward, parametric policies focus on measurable data points. When the triggers occur, a predetermined payout is made quickly, providing financial support without lengthy claims processes. This approach is especially useful for events like natural disasters, helping individuals or businesses respond efficiently and reduce financial uncertainty.