Paying a set amount based on the magnitude of an event
Parametric insurance is a type of insurance that pays out a predetermined amount based on the occurrence of a specific event or trigger, rather than the actual financial losses incurred by the insured. This differs from traditional insurance, which typically covers the actual losses and expenses resulting from an insured event. Parametric insurance is designed to provide quick and efficient payouts, especially in situations where it may be challenging to assess and verify the exact losses.
Parametric insurance for agriculture protects farmers against losses caused by adverse weather conditions, such as drought, excessive rainfall, frost, or temperature extremes. The payout is based on predetermined crop yield or weather data.
Parametric Insurance is one important part of a comprehensive insurance programme. It is likely existing insurance arrangements will have elements of cover but may not provide the precise certainty when a specific scenario occurs. Contact Elmore to undertake a gap analysis of your existing cover to that of parametric insurance to see how you are covered.
We take cyber security seriously and are one of the few in the insurance industry to certify with Cyber Essentials. Implementation of Cyber Essentials controls can significantly reduce the risk of prevalent but unskilled cyber-attack.