Why Every Company Should Have a Parametric Policy

According to the World Bank, the earthquake that shook Turkey back in February caused direct physical damage worth $34 billion.

The Turkish Enterprise and Business Confederation, however, estimates the quake’s total economic impact will reach roughly $84.1 billion, including loss of productivity and national income.

‘Earthquakes can have a devastating impact, not only on the built environment but on the long-term economic recovery of an area. The aftermath can last months, if not years,’ said Megan Linkin, Swiss Re’s senior parametric Nat CAT structurer for North America.

The Turkey quake demonstrates just how far-reaching the effects of natural disasters can be in a global economy. Because of potential disruptions to manufacturing, shipping and other commercial activities, even entities thousands of miles away are not safe from an earthquake’s damage to their bottom lines.