Parametric insurance, new frontier of insurance

Polizze Parametriche, nuova frontiera dell'assicurazione

Parametric policies represent an innovative form of insurance that offers coverage based on specific, predefined and measurable parameters.

It is a solution offered by Inser Spa, which differs from traditional policies because it determines the payment based on the occurrence of a specific natural event, or the achievement of a predetermined threshold. Concrete examples of useParametric insurances cover specific risks that can be measured objectively through a parameter set out in the contract. For example, parametric insurance for a farm could be activated in the event of prolonged drought, measured by the amount of rainfall recorded over a given period of time. Other examples may include natural events such as earthquakes of a certain intensity or floods that exceed a certain hydrometric level as, unfortunately, has happened in these days in Emilia-Romagna. For an event to be considered eligible as an insurable trigger, it must be fortuitous, or outside the policyholder’s control. This means that the event must be objectively measurable and verifiable, so as to ensure transparency in the determination of compensation. How the insurance worksThe insurance contract establishes a hypothetical amount of compensation that represents the amount paid in case of trigger activation, then the specific parameter that activates the compensation mechanism is determined. In the case of a parametric precipitation policy, for example, exceeding a precipitation threshold could trigger payment. Benefits for insured personsParametric insurances offer many advantages for policyholders, including a quick and transparent claims settlement process because when the event occurs, exceeded the established threshold, the compensation is paid immediately without the need to assess the actual losses, which very often gives rise to prolonged litigation. The role of InserInser Spa stands out for its commitment to support its customers in every aspect of insurance. We are always ready to listen and understand the needs of companies, offering expert advice and customized solutions. Parametric policies are an important tool for addressing specific risks, ensuring timely and transparent protection. We can guide our customers through the process of selecting and customizing parametric policies, ensuring that every aspect is clear and understandable.