Parametric insurance
Definition
Parametric insurance pays a pre-agreed amount when a measurable trigger is met, such as a wind speed, an earthquake magnitude or an official declaration, instead of reimbursing assessed losses.
Why It Matters
It depends on trusted data and automated triggers, which makes data quality and model governance central to the product.
Latest Coverage
- Arbol launches parametric cover against government moratoriums on data centre construction 23 October 2026
- BMA moves target for new parametric special purpose insurer class to fourth quarter 28 September 2026
More in AI in Insurance and Reinsurance.
Related Terms
- Segregated accounts company
- Insurance-linked securities (ILS)
- Bermuda Solvency Capital Requirement (BSCR)
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