At the beginning of 2019, the Moroccan government implemented a law to help its citizens recover from damages caused by natural catastrophes.
The country has been hit by extensive flooding and near-daily earthquakes. They’re also at risk for tsunamis.
The government was looking for a solution that would help protect its uninsured citizens in the event of a disaster by providing them with a fast-acting insurance coverage that paid based on the severity of the disaster.
‘It basically means that uninsured people get some compensation when their primary residence is damaged or uninhabitable after a natural disaster,’ said Simon Young, senior director at Willis Towers Watson.
To solve this problem, Young and a network of other insurers helped the government develop a parametric insurance solution that pays out based on an index, eliminating the need for a claims adjustment period.