X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Photo: ©emiliezhang/stock.adobe.com Photo: ©emiliezhang/stock.adobe.com

In the current hard real estate insurance market—in which rates are rising, underwriting criteria is stricter and insurers are writing fewer policies—parametric insurance may be an option for property owners and operators. Parametric has enormous potential to help close the protection gap—to begin covering severe, low-frequency risks that until now have gone largely unprotected.

Unlike traditional property coverage, parametric insurance does not indemnify the pure loss, but rather issues a set payment upon the occurrence of a triggering event, such as a hurricane of a specific intensity. Sometimes referred to as index-based insurance, this type of coverage is reaching a new level of popularity as organizations look for additional alternative risk transfer options.

This premium content is locked for
Insurance Coverage Law Center subscribers only.

Start a free trial to enjoy unlimited access to the single source of objective legal analysis, practical insights, and news for the insurance industry.

  • Access the most current expert analysis and daily developments across jurisdictions
  • Solve complex research issues with expert tools and intelligence
  • Tap into insurance coverage expert guidance

Already have an account?
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].

 

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.