THINK SIMPLE THINK DIFFERENT
Banking Frontiers|July 2020
A product revolution could be brewing in the insurance sector:
THINK SIMPLE THINK DIFFERENT

Insurance has always been a tough product to manufacture (underwrite) and a tough product to sell. But there is a glimmer of change on the horizon, in the form of parametric insurance. How is it different? Fundamentally, it is a contract that ensures a policyholder against a specific event, and if the event happens a set amount is paid based on the magnitude of the event. This is unlike traditional insurance which pays against the magnitude of actual loss. The amount payable, the parameter, and a third party responsible for verifying that the parameter was triggered – all these are in the parametric policy. The third-party will usually be a government agency. For the insured, payments are quicker - usually made in a matter of days or weeks after the specified event occurs, as against months or years in the case of traditional insurance policy.

Parametric insurance solutions have been available since the late 1990s, but have become popular in corporate insurance recently. Newer products are being developed around the world and are often described as ‘elegant solution for risk-transfer concerns’. Parametric insurance is being introduced in Africa and south-east Asia, where extreme weather is a common problem. Sri Lanka has a unique parametric product - offered jointly by charity Oxfam and insurance company Sanasa Insurance - for possible losses due to natural disasters in cultivations of rice, pepper, and cinnamon, which are the country’s major items of agricultural exports. The product has inherent processes based on distributed ledger technology to cover risks and uses weather stations to automatically trigger claims.

هذه القصة مأخوذة من طبعة July 2020 من Banking Frontiers.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة July 2020 من Banking Frontiers.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من BANKING FRONTIERS مشاهدة الكل
Finance gears up for festivities
Banking Frontiers

Finance gears up for festivities

BFSI companies are charging their online and omnichannel strategies with personalized festive deals this season:

time-read
4 mins  |
October 2024
Non-cash transactions can touch a phenomenal level by 2028
Banking Frontiers

Non-cash transactions can touch a phenomenal level by 2028

Capgemini Research Institute’s World Payments Report 2025 highlights the era of account-to-account an instant payments:

time-read
3 mins  |
October 2024
The Confluence of Artificial Intelligence and Cybersecurity: AI as the Game Changer
Banking Frontiers

The Confluence of Artificial Intelligence and Cybersecurity: AI as the Game Changer

In an increasingly interconnected world, safeguarding our digital assets has become paramount. Enter the dynamic duo: Cyber security and Artificial Intelligence (AI).

time-read
3 mins  |
October 2024
A new trinity in digital lending space
Banking Frontiers

A new trinity in digital lending space

Three platforms in the lending space are poised to change the way lenders offer credit and borrowers access funds in India:

time-read
4 mins  |
October 2024
Finance gears up for festivities
Banking Frontiers

Finance gears up for festivities

BFSI companies are charging their online and omnichannel strategies with personalized festive deals this season:

time-read
4 mins  |
October 2024
Small MFI, International Engagements
Banking Frontiers

Small MFI, International Engagements

Mitrata Inclusive Financial Services in the midst of transformation growth

time-read
3 mins  |
October 2024
MFIs: Big Impact Big Changes,
Banking Frontiers

MFIs: Big Impact Big Changes,

Even as MFIs are fueling economic growth for the underprivileged, what is interesting is that they are transforming themselves in areas like HR, technology, funding, leadership, collections, and more. Banking Frontiers presents the initiatives and initiatives at 9 such organizations:

time-read
3 mins  |
October 2024
Climate Risk Forum for CROS
Banking Frontiers

Climate Risk Forum for CROS

Excerpts from a discussion on shaping the future of climate change resilience in India:

time-read
3 mins  |
October 2024
Seamless Supply Chain Finance
Banking Frontiers

Seamless Supply Chain Finance

Deep insights emerge from this fireside chat at NBFC's Tomorrow Conclave.

time-read
6 mins  |
October 2024
Star Health sees strong demand from the IT sector
Banking Frontiers

Star Health sees strong demand from the IT sector

Biju Menon, Chief Business Officer at Star Health Insurance, looks at the evolution of employee health insurance from multiple perspectives:

time-read
4 mins  |
October 2024