Earthquake Risk Transfer
How does parametric insurance work
Parametric insurance is known as an index-based insurance policy and coverage is based on a metric from the collection of reliable data from third-party source. The claims payment amount is agreed to in advance and is triggered when the threshold is exceeded even without any damages.
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.