Triggering Change: Parametric Solutions for Climate Resilience consolidates insights from experts across the Marsh McLennan organization regarding parametric insurance and its significance in managing climate risks by helping close protection gaps and enhancing societal climate resilience. Guy Carpenter is a business of Marsh McLennan.
Economic losses resulting from natural catastrophes in 2022 amounted to over USD 270 billion, while only USD 120 billion was covered by insurance. Parametric solutions—in which coverage takes effect once a pre-set event trigger is attained, such as reaching a threshold of sustained wind speed—can help close that gap while providing an effective complement to traditional indemnity insurance.
Some of the featured insights include:
- Parametric Solutions Improve Liquidity Following Major Loss Events
- Video—Insuring Against Wildfire Risks: The Case for Parametric Insurance
- How a Parametric Solution Can Facilitate the Claims Process for a Chemical Company
- Parametric Insurance Can Boost Resilience for the Public Sector
- A Parametric Program for Mexican Farmers
- Using Parametric Solutions to Help Close the Flood Protection Gap
- Community Based Catastrophe Insurance: A Model for Closing the Disaster Protection Gap
- Extending the Application of Parametric Solutions
Innovations in parametric solutions can play a critical role in helping governments, businesses and communities transfer a broader range of climate risks, extend coverage to those most vulnerable, de-risk the climate transition and build greater climate resilience in an increasingly complex risk landscape. Pairing risk reduction measures—such as hazard mitigation, building codes and community resilience planning—with parametric solutions helps produce a robust response to address uninsured or underinsured events while encouraging stronger infrastructure development and maintenance.