Why does a lack of accessible data hold back disaster protection for the most vulnerable communities?
Parametric insurance has the potential to deliver fast, predictable financial support after disasters – but in many countries, limited transparency and technical understanding continue to slow adoption.
A new paper from the Insurance Development Forum (IDF) Risk Modelling Steering Group (RMSG) provides a summary review of the collection of parametric case studies that have been published on a dedicated IDF webpage throughout the last months.
The paper highlights the key takeaways from these case studies, including how these solutions are already delivering rapid liquidity after disasters, and closing critical protection gaps. It also identifies four calls to action for the wider insurance industry:
- Enable greater awareness in relation to parametric instruments
- Balance complexity and transparency when developing products
- Seek to minimise basis risk associated with transactions
- Develop practical tools and checklists to support greater uptake of parametric products
The paper also identifies key challenges – from basis risk and data availability to scaling solutions effectively – and sets out a clear call to action for governments, regulators and the industry to facilitate greater use of these effective insurance solutions.
This work will be presented to global experts in disaster risk and infrastructure resilience at the ICONHIC 2026 conference which takes place 29 June – 2 July 2026 in Crete, Greece:
Collaboration and knowledge-sharing is critical to unlocking the full potential of parametric solutions for Future Ready Nations.
