Public and private sector clients around the world, including many in the Asia-Pacific region, increasingly recognise the benefits of parametric insurance for mitigating various weather-related risks.
These benefits include certainty, speed and cost-efficiency. Certainty because the coverages are automatically triggered when data from objective, third-party sources fall outside pre-agreed thresholds. In other words, clients know how much they will receive once certain conditions are met.
In this article, Ankush Bhardwaj, Head of AXA Climate for the Asia-Pacific region, sheds light on three essential components of parametric insurance and the relevance of parametric solutions to different industry sectors.