Parametric Insurance: Revolutionizing Risk Management in India and Beyond
DOI:
https://doi.org/10.33516/maj.v59i6.67-71pKeywords:
No Keywords.Abstract
This article highlights the impact of frequent recurrences and intensity of natural disasters in India and across the globe and focuses on India's susceptibility and economic implications. Parametric insurance has the potential to help India withstand climate change impacts and enhance its economic resilience. The specific triggers and immediate payouts make it a viable approach to reduce the insurance protection gap and mitigate the growing impact of climate induced catastrophes. Despite the challenges, there is a growing demand for parametric insurance around the globe, which will in turn help India to find ways to enhance its implementation and performance in the country. Emerging technologies like IoT, AI, and blockchain have a transformational impact in revolutionizing parametric insurance. This study underlines the significance of working with stakeholders, leveraging technological innovations and implementing policy measures to create inclusive and cost-effective parametric insurance solutions.
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