And the situation is likely to get worse given the increasing frequency and severity of natural catastrophes brought about by climate change, it said. 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 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.