Parametric payments do not require on-the-ground loss adjusting, so payments can be made quickly in hard-to-reach, remote locations, “often via online payment platforms or through mobile phone networks,” said the report. 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 & Associates. 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.
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 & Associates. 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.