Parametric Insurance

A parametric policy agrees to pay a pre-defined amount of money when a pre-defined event occurs.

It utilises a pre-agreed parameter, such as a hurricane's wind speed, the magnitude of an earthquake, or flood water depth, to activate payouts. 

There is no need for a loss adjustor to assess the loss, instead we use data to confirm the exact location and intensity of the event.

In its simplest form, parametric insurance is a data point followed by a payment. 

Before the policy begins, we work with you to understand the problem statement and agree what parameters should be used to trigger a claim. This is all agreed pre-inception, giving ample time to refine the structure, so it fits your exact needs.  

When the agreed parameter is met or exceeded, an independent data provider confirms the event and the claim is paid quickly with minimal paperwork. Because payouts rely on objective, independently verified data rather than physical damage, claims are settled quickly and predictably.

Our team supports you through design, placement and payout to ensure the structure fits your needs.

• Fast payouts: Claims are typically settled within 30 days.
• Full payment: Once the trigger is hit, the agreed amount is paid in full.
• Certainty: Payouts are based on objective, third‑party data.
• Covers hard‑to‑insure risks: Ideal for non‑damage business interruption and climate‑related exposures.
• Customisable: Structures can be tailored to your specific risk profile

Traditional insurance compensates you for the actual loss you experience, while parametric insurance provides a pre-agreed payout when a specific event or threshold occurs, no loss assessment required.

Traditional Insurance

• Pays out based on assessed losses using traditional loss-adjustment processes
• Claims can take months or even years to fully settle
• Often involves lengthy investigations and negotiations
• Covers physical or financial losses as defined in the policy wording

Parametric Insurance

• Pays a fixed amount when a pre-agreed parameter, such as rainfall level, wind speed, or earthquake magnitude, is triggered, regardless of the physical damage.
• Useful for covering natural catastrophes, weather events, or gaps in traditional insurance coverage.
• Enables rapid payouts, often within days.
• Helps address risks that are hard to quantify or prove with traditional insurance.