Five Steps To Implement Real-Time Quoting For Parametric Insurance
As an insurance executive, you know that providing real-time quoting to your clients is essential for staying competitive in today’s market. However, traditional insurance policies often fall short when it comes to covering events that are difficult to predict or quantify. That’s where parametric insurance comes in. By using real-time data to trigger payouts based on pre-defined parameters, parametric insurance can provide coverage for events that are usually not insured.
In this post, we’ll show you how to implement parametric insurance for real-time quoting using Riskwolf’s unique real-time data and dynamic risk modeling.
Step 1: Identify the Events to Cover
The first step in implementing parametric insurance is to identify the events that you want to cover. These could be natural disasters, weather events, or other types of events that are difficult to predict or quantify. Once you have identified the events, you need to define the parameters that will trigger a payout. For example, if you are covering a hurricane, you might define the parameters as wind speed and storm surge.
Step 2: Collect Real-Time Data
The next step is to collect real-time data that will be used to trigger payouts. This could include data from weather stations, sensors, or other sources. The data should be collected in real-time and fed into a risk modeling system that can analyze the data and trigger payouts based on the pre-defined parameters.
Step 3: Define the Payout Structure
Once you have identified the events and collected the real-time data, you need to define the payout structure. This should include the amount of the payout, the trigger parameters, and any other relevant details. The payout structure should be designed to provide adequate coverage for the events you are covering while also being affordable for your clients.
Step 4: Implement the System
The next step is to implement the system. This will involve setting up the risk modeling system, integrating it with your existing systems, and training your staff on how to use it. You may also need to work with third-party providers to collect the real-time data and provide other services.
Step 5: Monitor and Adjust
Finally, you need to monitor the system and make adjustments as needed. This could include tweaking the parameters, adjusting the payout structure, or making other changes based on feedback from your clients or staff.
With Riskwolf, you can turn 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. Contact us today to learn more about how we can help you implement parametric insurance for real-time quoting.