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Parametric Insurance Pricing: How make it affordable

Access to Earling's short-term earthquake risk models can significantly benefit risk owners in transferring their earthquake risks through parametric insurance. For instance, consider the scenario where Earling's technology detected an elevated risk of an earthquake with a magnitude larger than 6 in a specific region. With this early warning, a business operating in the area could proactively seek parametric insurance coverage to protect against potential losses resulting from the forecasted earthquake.

In this hypothetical case, the business, aware of the impending risk, could secure a parametric insurance policy that is triggered by the occurrence of an earthquake with a magnitude exceeding 6. If the earthquake were to occur and meet the specified criteria, the business would receive a pre-agreed payout, providing much-needed financial support for recovery and continuity of operations.

This example illustrates how access to Earling's short-term earthquake risk models can empower risk owners to make informed decisions and take proactive steps to transfer their earthquake risks during high-risk seismic time-windows in the high-risk regions through parametric insurance. By leveraging early warning data, businesses can effectively manage their exposure to earthquake-related losses and ensure rapid financial support in the event of a significant seismic event.

Furthermore, the use of parametric insurance in conjunction with early warning systems like Earling's can be a winning game for risk owners. It allows them to benefit from faster and more transparent claims settlements, tailored coverage based on specific risk parameters, and improved business continuity. Ultimately, this integrated approach enables risk owners to enhance their resilience to earthquake risks and navigate the aftermath of such events with greater confidence and financial security.