Five Reasons Why Parametric Insurance is the Solution for Business Insurance
As an insurance executive, you know that business insurance coverage is essential to protect businesses from losses due to events that may occur during the normal course of business. However, traditional insurance policies can be tricky with their terms and conditions, and there can be negative perceptions related to them. That’s why we’re here to introduce you to parametric insurance, a solution that can revolutionize the way you think about business insurance.
According to a recent report by Advance Market Analytics, the business insurance market is booming worldwide, with key players such as Allianz, AXA, and Nippon Life Insurance leading the way. The report also highlights the increasing adoption of cloud-based technologies and the growing stringency of government regulations as market drivers. However, traditional insurance policies may not cover all the risks that businesses face, which is where parametric insurance comes in.
Here are five reasons why parametric insurance is the solution for business insurance:
- It Covers Specific Risks: Parametric insurance is designed to cover specific risks that traditional insurance policies may not cover. For example, if a business is using cloud providers as 3rd party, such as AWS or Google, parametric insurance can provide coverage based on specific parameters, such as hours of downtime. Especially in the area of asset-related risks and cashflow risks such as business interruption and other losses it it’s a good fit.
- It Provides Faster Payouts: With parametric insurance, payouts are based on pre-determined triggers, such as a certain level of rainfall or wind speed. This means that payouts can be made quickly and efficiently, without the need for lengthy claims processes.
- It Uses Real-Time Data: Parametric insurance uses real-time data to trigger payouts, which means that businesses can receive coverage for events that traditional insurance policies may not cover, such as cloud downtimes.
- It Offers Customizable Coverage: Parametric insurance can be customized to meet the specific needs of each business, which means that businesses can choose the parameters that trigger payouts and the level of coverage they need.
- It Provides Peace of Mind: With parametric insurance, businesses can have peace of mind knowing that they are covered for specific risks, without the need to worry about tricky terms and conditions or lengthy claims processes.
At Riskwolf, we specialize in turning real-time data into insurance. Using unique real-time data and dynamic risk modeling, we enable insurers to build and operate parametric insurance at scale. Simple. Reliable. Fast.
If you’re interested in learning more about how parametric insurance can revolutionize the way you think about business insurance, get in touch with us today.