
Unlike other insurance policies, parametric insurance is an insurance type which is based on a predetermined set of parameters, or conditions, as opposed to the actual value of the asset or loss. Parametric insurance offers business owners and insurers a responsive, cost-effective and efficient insurance alternative to both transfer and manage risk.
Traditional insurance policies offer protection against specific losses, however, in recent years, parametric credit insurance has become a more regular choice. Often referred to as index-based insurance, parametric credit insurance offers predetermined payouts which are based on set events which are triggered. This can be seen by some …





