What do you see when you picture the aftermath of a major natural disaster? Images of devastation, loss, and uncertainty swimming in and out of view? Perhaps you also have a sense of time out of joint as you envision people suspended in an awkward present that finds them trying to take stock of a calamitous event while also planning for the future. Now, imagine an insurance solution that reacts almost instantly after such events providing clarity in moments of chaos. In essence, that’s what parametric insurance does; it gives communities and businesses the power to rebuild quickly.
As 2023’s record-breaking heat waves have shown, climate change is not an abstract threat but a present-day challenge with massive economic implications. From 2016-2022, natural disasters in the U.S. have resulted in $1 trillion in damages. Swiss Re projected that if left unchecked, climate change could erase up to 18% of global GDP by 2050. Given the steady uptick in extreme weather events that we’ve seen over the last number of years, it’s clear that there is a need for a risk management strategy that is responsive and dependable.
Parametric insurance addresses the limitations of traditional indemnity insurance. For agents, the pitch to clients is straightforward: parametric insurance guarantees quick payouts based on objective criteria, eliminating the need for lengthy adjustment processes. Instead of relying on claims adjusters, payouts are tied to verified and trusted public climate datasets. Furthermore, parametric insurance is versatile and provides solutions for various risks worldwide, which conventional insurance models often neglect.
At Arbol, we’re committed to broadening the scope of disaster risk management. To that end, we’re eager to partner with agents and brokers that are interested in bringing top-tier risk management solutions to new or underserved markets. If you’re interested in partnering with a company whose ethos is grounded in a spirit of cooperation, we invite you to contact us here.