Over the last 20 years , PARAMETRIC INSURANCE has enjoyed a steep ascent . Unlike indemnity insurance , payouts are made automatically according to predefined parameters . As a result , it is sometimes thought of as a ‘ REBOUND PAYMENT ’

INFANCY

Parametric insurance can trace its roots back more than 20 years to the late- 1990s , when the concept was still in its infancy . Back then , developing nations in Asia were experimenting with index-based insurance , designed mostly to protect farmers and agricultural communities in the event of severe weather .

PIONEERSHIP

The Caribbean Catastrophe Risk Insurance Facility ( CCRIF ) launched the first multi-country risk pool , successfully adopting parametric policies to help Caribbean nations limit the financial impact of natural catastrophes . Since inception , it has paid almost US $ 250mn to Caribbean and Central American governments following tropical cyclones , earthquakes and excess rainfall .

14 September 2022