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 & Nigel Brook, partner, Clyde & Co, commented: “Parametric insurance products are developing rapidly at local, regional and national level as they provide an elegant solution for risk-transfer concerns, often for populations that were previously uninsured and for whom the protection gap has traditionally been widest. Co. In a report , the company said a 1 % increase in parametric insurance - which pays out a fixed sum after a triggering event - would 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 protection .
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 - would 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 protection .