Natural Catastrophe
Provides predefined financial protection against specified natural catastrophe events based on agreed parameters.
Parametric Insurance
Protection That Pays
When It Matters
Parametric Insurance pays a pre-agreed amount when a defined event, such as rainfall or temperature, crosses a set threshold, delivering faster settlements without lengthy loss assessments.
Trigger-Based Protection
Faster Payouts
Financial Resilience
What Is Parametric Insurance?
Understanding Parametric Insurance
Parametric Insurance provides a predefined payout when an agreed measurable event reaches a specified threshold. Unlike traditional insurance, payout depends on the trigger's intensity rather than assessment of the actual physical loss.
What Does It Cover?
- Natural Catastrophe Risks
- Weather-related Risks
- Earthquake
- Excessive Rainfall
- Wind Speed
Example:
If an agreed rainfall threshold is exceeded at a specified location, the policy may trigger a predetermined payout, subject to the policy terms and conditions.
Coverage Components
Comprehensive Protection Across Parametric Risks
Weather Risk
Protects businesses against financial impacts arising from measurable adverse weather conditions.
Business Interruption
Provides a predefined payout when an agreed event or parameter causes disruption to business operations.
Agriculture & Crop Risk
Provides financial protection against specified weather and environmental parameters affecting agricultural operations.
Infrastructure Risk
Supports businesses exposed to measurable environmental and catastrophe risks affecting infrastructure and operations.
Advisory Support
Protect Your Business Before Risk Impacts You
We understand your operations, locations and risk triggers to structure parametric protection aligned with your requirements.
- 1.
Risk Assessment & Needs Analysis
We understand your operations, geographical exposure, historical data, and key risks to identify suitable parameters and triggers.
- 2.
Trigger & Policy Design
Our specialists help structure appropriate triggers, thresholds, payout structures, limits, and policy terms.
- 3.
Market & Underwriting Support
We coordinate with insurers and relevant stakeholders to facilitate underwriting and develop a solution aligned with your risk profile.
- 4.
Dedicated Claims Advocacy
Our team supports you through the payout process and coordinates with insurers for efficient resolution after a triggered event.
- 5.
Annual Policy Review & Renewal
Regular reviews help ensure your parametric programme continues to reflect changes in your business, exposure, and risk environment.
Ready to Protect Your Business?
We help structure parametric insurance solutions tailored to your business risks, exposures, and predefined triggers.
Frequently Asked Questions
Answers to Common Insurance Queries
The trigger should be based on an objectively measurable parameter demonstrating a meaningful correlation with the underlying financial exposure. Historical event data and exposure characteristics are used to calibrate the trigger and payout.
Basis risk occurs when the selected trigger does not adequately correlate with the cedant's actual loss. Trigger selection, geographical granularity, threshold levels and payout calibration therefore require careful assessment.
Equirus Raghnall evaluates the underlying exposure, available historical data, trigger methodology, payout structure and market capacity before developing a parametric solution aligned with the intended risk transfer.
The analysis focuses on historical correlation, event frequency, severity, geographical exposure and potential basis risk to determine whether the proposed trigger can provide meaningful protection against the intended financial exposure.
