Parametric insurance is a type of insurance that does not indemnify the pure loss, but "ex ante" agrees to make a payment on the happening of some parametric triggers, which may ordinarily precipitate a loss or a series of losses.
Parametric insurance is a type of insurance that does not indemnify the pure loss, but "ex ante" agrees to make a payment upon the occurance of a tiggering event. The triggering event is often a catastrophic natural event which may ordinarily precipitate a loss or a series of losses.