Parametric Insurance to Build Financial Resilience

Parametric Insurance to Build Financial Resilience

November 12, 2024

This joint UNDP-Generali report “Parametric insurance to build financial resilience”, with support from the Insurance Development Forum, highlights how parametric insurance can help governments, businesses and communities financially prepare for rising risks. Parametric insurance – which is based on triggers rather than actual losses - is a complementary risk transfer mechanism to fill gaps left by traditional indemnity-based insurance. The report includes a range of case studies, insights and tools to increase governments’, businesses’ and communities’ understanding of how parametric policies work, and how they protect people and assets in the event of hazard and shock. The reports also calls for greater collaboration between insurance, government and development actors to allow parametric insurance to make a meaningful contribution to closing the protection gap.