A New Option For Risk Managers: Parametric Insurance (Insurance Business)

A New Option For Risk Managers: Parametric Insurance

  Tuesday, June 19th, 2018 Source: Insurance Business

Parametric insurance could become more mainstream in the commercial sector and help clients address some of the limitations of traditional insurance — that’s according to a new report from Airmic in collaboration with Marsh and Swiss Re Corporate Solutions. But what exactly is parametric insurance? We asked one of the report’s contributors, Steve Harry, risk finance consultant in Marsh’s Financial Solutions Group, for the full run down on where the parametrics market is at. “Parametric insurance works using a clearly defined parameter — i.e. a metric or an index that is easy to determine,” Harry explained.

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