Parametric insurance / Jaclyn De Medicci Bruneau.

Abstract: Understanding new solutions for public-sector risk management as the frequency and severity of climate-related disasters increases, governments face mounting challenges in managing and financing climate-related risks. Traditional insurance markets are responding to these escalating risks with higher premiums and reduced coverage. Parametric insurance is emerging as a potential solution to strengthen resilience to climate risks by providing pre-agreed payouts based on specific triggering events, rather than assessed damages. This will create a more resilient and sustainable insurance sector and strengthen communities.