Current Situation
Parametric insurance enables personalized coverage by leveraging real-time data and advanced analytics to define triggers and payouts based on specific parameters, providing tailored protection for retail travel or catastrophic events. With parametric insurance, claims processing becomes faster and more efficient as payouts are triggered automatically based on predefined criteria, eliminating the need for lengthy claim assessments and reducing administrative burden. Parametric insurance offers a means for businesses and individuals to transfer risk and enhance their resilience against unforeseen events, providing financial security and enabling prompt recovery in the aftermath of a covered event.
Goals and Objectives
The goal is to provide a seamless and efficient customer experience by offering parametric insurance products that simplify the insurance process, enable quick claims settlements, and provide transparent coverage terms. Insurers aim to offer parametric insurance as a comprehensive risk management tool, allowing customers to proactively manage and transfer their risks. The goal is to provide innovative coverage solutions that address specific risks and help customers mitigate the financial impact of unforeseen events. Insurers strive to leverage parametric insurance to tap into new markets and differentiate themselves from competitors. By offering unique and tailored coverage options, insurers aim to attract a wider customer base and establish themselves as leaders in the parametric insurance space.
Technology Deployed
Big Data
IoT
Cloud
Cognitive technologies
Next-gen security
Automated underwriting systems
Digital platforms
5G
Use Case Summary
Parametric insurance is designed to provide predetermined payouts based on specific triggers, such as a predefined event or a quantifiable parameter, rather than traditional claims assessment. With parametric insurance, claims settlement is faster and more efficient compared with traditional insurance. Payouts are triggered automatically, eliminating lengthy claims processing and reducing administrative costs. Parametric insurance enables coverage for risks that are difficult to assess or quantify using traditional methods, such as natural disasters or commodity price fluctuations, providing financial protection for diverse industries and sectors.