Parametric Insurance: A Paradigm Shift in Risk Management and Claims Handling

Insurance policy document with magnifying glass, dollar bills, and toy car representing auto insurance coverage.

What is Parametric Insurance? The National Association of Insurance Commissioners (NAIC) defines parametric insurance as a type of insurance contract that “insures a policyholder against the occurrence of a specific event by paying a set amount based on the magnitude of the event, as opposed to the magnitude of the losses in a traditional indemnity […]