@Generali Investments.
Parametric insurance is emerging as a transformative risk transfer solution, addressing coverage gaps and inefficiencies inherent in traditional indemnity-based insurance.
The global insurance market presents significant opportunities for growth and innovation, driven by the increasing focus on addressing climate-related events and enhancing efficiencies in claims management.
Parametric insurance, which triggers pay-outs based on predefined parameters (e.g., weather thresholds, earthquake magnitudes), offers a streamlined and transparent alternative to indemnity-based insurance.
From an investor's perspective, parametric structures offer a compelling combination of objective, data-driven risk assessment, technological scalability, minimised uncertainty in claims management and losses, reduced trapped capital risks, attractive return potential, diversification benefits, and opportunities for social impact.
This in-depth paper delves into the mechanisms, applications and benefits of parametric insurance from an investor’s perspective. Read more to learn how parametric insurance can enhance resilience and unlock unique investment opportunities through structured, data-driven instruments.
