What is the Parametric insurance

د/ إلهام · 07-27-2015, 11:44 AM

What is the Parametric insurance
What is the Parametric insurance
What is the Parametric insurance
Parametric insurance is a type of insurance that does not indemnify the pure loss, but ex ante agrees to make a payment upon the occurrence of a triggering event. The triggering event is often a catastrophic natural event which may ordinarily precipitate a loss or a series of losses. But Parametric insurance principles are also applied to Agricultural crop insurance and other normal risks not of the nature of disaster, if the outcome of the risk is correlated to a parameter or an index of parameters.

Transaction cost
Parametric insurance may reduce transaction costs involved in writing and administering insurance policies because there is less need for actual loss assessment for payment of claims or underwriting rating requirements to determine the premium based on liabilities and extent of risk sharing.

Application
Parametric insurance is ideal for low-frequency but high-intensity losses as in catastophic perils, weather-related risks in agriculture or other economic activities, and risks sought to be covered without sufficient history of losses captured as insurance-readable data.

Users
For example, the Multilateral Investment Guarantee Agency covers hurricane risks based on category parameters and the World Bank designs earthquake Parametric insurance based on the rigour parameter of earthquake on an appropriate measuring scale. National insurance Academy in India propounded the concept of Parametric life insurance premium setting based on variations in mortality table rather than setting constant level premium, which results in wide scale surrenders on improvements in mortality table due to better life expectancies at various age layers.

Another application of Parametric insurance propounded by K C Mishra of National insurance Academy, India is for managing risks of island dwellers. Usually islands depend on supplies from mainland or mainlands. If there is a Parametric hazard in the mainland, the island dwellers suffer from supply bottlenecks leading to financial loss of debilitating dimensions. In such cases an index of parametrization is warranted if there can be supplies from multiple mainlands. Such improvization is better known as transinsurance rather than pure form Parametric insurance.

المواضيع المتشابهه:

المصدر: منتديات همس المصريين - من قسم: Insurance Department

What is the Parametric insurance

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الملك · 08-01-2015, 11:28 AM

WoW

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07-27-2015, 11:44 AM	#1
د/ إلهام ♣ صاحبة همس المصريين ♣ تاريخ التسجيل: Wed Jun 2011 المشاركات: 34,756 معدل تقييم المستوى: 20 اوسمتي مجموع الاوسمة: 1	What is the Parametric insurance What is the Parametric insurance What is the Parametric insurance What is the Parametric insurance What is the Parametric insurance Parametric insurance is a type of insurance that does not indemnify the pure loss, but ex ante agrees to make a payment upon the occurrence of a triggering event. The triggering event is often a catastrophic natural event which may ordinarily precipitate a loss or a series of losses. But Parametric insurance principles are also applied to Agricultural crop insurance and other normal risks not of the nature of disaster, if the outcome of the risk is correlated to a parameter or an index of parameters. Transaction cost Parametric insurance may reduce transaction costs involved in writing and administering insurance policies because there is less need for actual loss assessment for payment of claims or underwriting rating requirements to determine the premium based on liabilities and extent of risk sharing. Application Parametric insurance is ideal for low-frequency but high-intensity losses as in catastophic perils, weather-related risks in agriculture or other economic activities, and risks sought to be covered without sufficient history of losses captured as insurance-readable data. Users For example, the Multilateral Investment Guarantee Agency covers hurricane risks based on category parameters and the World Bank designs earthquake Parametric insurance based on the rigour parameter of earthquake on an appropriate measuring scale. National insurance Academy in India propounded the concept of Parametric life insurance premium setting based on variations in mortality table rather than setting constant level premium, which results in wide scale surrenders on improvements in mortality table due to better life expectancies at various age layers. Another application of Parametric insurance propounded by K C Mishra of National insurance Academy, India is for managing risks of island dwellers. Usually islands depend on supplies from mainland or mainlands. If there is a Parametric hazard in the mainland, the island dwellers suffer from supply bottlenecks leading to financial loss of debilitating dimensions. In such cases an index of parametrization is warranted if there can be supplies from multiple mainlands. Such improvization is better known as transinsurance rather than pure form Parametric insurance. المواضيع المتشابهه: Health insurance Engineering insurance or insurance of civil works Auto Insurance , Auto Insurance Fire insurance Marine Insurance , Insurance المصدر: منتديات همس المصريين - من قسم: Insurance Department What is the Parametric insurance Share Share this post on Digg Del.icio.us Technorati Twitter

08-01-2015, 11:28 AM	#2
الملك ☻ مشرف عام ثان ☻ تاريخ التسجيل: Tue Mar 2012 المشاركات: 40,501 معدل تقييم المستوى: 59 اوسمتي مجموع الاوسمة: 5	رد: What is the Parametric insurance WoW Share Share this post on Digg Del.icio.us Technorati Twitter __________________

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