Parametric Insurance for Property Mortgage
Why is it relevant?
Total property loss due to natural disasters such as floods, storms, landslides etc. lead to an unsecured position for mortgages extended to individuals. This product covers the whole mortgage in case of an event where it allows the bank to foreclose the mortgage account on behalf of the customer.
How does it work?
Agreed payout (i.e. remaining principal amount)is made to the bank when pre-defined triggers (in terms of flooding, storms, fire, landslide, subsidence etc.) are met.
Who is it designed for?
Individuals who suffer total property loss in case of a natural disaster.