After the past decade of natural disasters, parametric insurance coverage is beginning to be more widely adopted, bridging the global insurance protection gap, according to CCRIF Co. In a report, the company said a more than 20% increase in parametric insurance - which pays out a fixed sum after a triggering event - could reduce the disaster burden on taxpayers by around 30% . The report said around 30% of natural disaster losses in a year were covered by insurance. While the developing world had the greatest protection gap, established economies are often financially hit more by a lack of coverage.
After a year of natural disasters, parametric insurance coverage is beginning to be more widely adopted, bridging the global insurance protection gap, according to Clyde & Co. In a report, the company said a 1% increase in parametric insurance - which pays out a fixed sum after a triggering event - could reduce the disaster burden on taxpayers by more than 20%. The report said around 30% of natural disaster losses in the past decade were covered by insurance. While the developing world had the greatest protection gap, established economies are often financially hit more by a lack of coverage.