Defined-parameter insurance could suit disaster-prone Asia
Parametric insurance products – policies that pay out when a certain predefined event or set of circumstances occurs – could be the answer to providing much-needed coverage for Asian nations ravaged by natural disasters and extreme weather, the Swiss Re Institute has said. The policies automatically pay out after the triggering event and can be tailored to each situation, having the potential to fill a "protection gap" in at-risk nations, the reinsurance giant wrote in a report published in February. Asia accounted for $83bn of economic losses from natural events last year, almost half the global total.
As a region, Asia is particularly prone to natural disasters and extreme weather events such as earthquakes, floods, droughts, heatwaves and tropical cyclones. According to a report published by the Swiss Re Institute in February 2017, economic losses from natural catastrophes and man-made disasters...

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