Parametric Insurance

Parametric Insurance,

Parametric Insurance: What is the Meaning of Parametric Insurance?

  1. Parametric Insurance can be defined as, An arrangement under which a risk company (insurance company) promises to pay a lump sum to the policyholder in the event of a specific event, such as an earthquake or hurricane. Events or parameters are often indicated by official, well-established indexes such as the Richter scale for the magnitude of an earthquake or the Ambassador Simpson scale for hurricanes. For this reason, parametric coverage is also called indexed insurance. Parameters can be determined by other objective factors, such as the degree of physical damage, and are usually limited to a specific time period and geographical area. Parties may also develop risk parameters based on wind speeds, storms, rainfall (or lack thereof) and other natural and man-made factors.

Literal Meanings of Parametric Insurance

Parametric:

Meanings of Parametric:
  1. Associated or expressed in one or more parameters.

Sentences of Parametric
  1. The parameters used in the parametric bootstrap simulation are phylogenetic trees derived from interconnected protein sequences and residual alternative matrix.

Insurance:

Meanings of Insurance:
  1. The process or arrangement under which a company or government agency guarantees some loss, injury, illness or death in return for premium payments.

  2. Anything that provides protection against possible emergencies.

Sentences of Insurance
  1. Meeting a high standard of personal conduct is the best protection against personal problems.

Synonyms of Insurance

safeguard, security, preventive measure, provision, precaution, cover, financial protection, shelter, defence, immunity, surety, protection, safety measure, indemnification, indemnity

Parametric Insurance,

Parametric Insurance means,

An agreement under which a global risk (insurer) agrees to pay a lump sum to a policyholder (insured) in the event of a specific event, such as an earthquake or hurricane of a certain magnitude. Events or parameters often point to an official, well-established index for the type of event, such as the Richter scale for earthquake magnitude or the Sapphire Simpson scale for hurricanes. For this reason, parametric coverage is also called indexed insurance. Parameters can be determined by other objective factors, such as the degree of physical damage, and are usually limited to a specific time period and geographic area. Contracting parties may also develop tailor-made risk parameters alone or in combination with wind, storm, rain (or lack thereof) and other natural and man-made factors.

Literal Meanings of Parametric Insurance

Parametric:

Meanings of Parametric:
  1. Relevant or expressed in one or more parameters.

Insurance:

Meanings of Insurance:
  1. An agreement in which a company or state guarantees certain damages, injuries, illnesses or deaths in exchange for a premium.

Sentences of Insurance
  1. Jacket hanging behind the seat, protected against air conditioning.

Synonyms of Insurance

backstop, guarantee, warranty, assurance, (financial) protection

Parametric Insurance,

Definition of Parametric Insurance:

  • An agreement under which the total risk (insurer) agrees to pay a lump sum to the policyholder (policyholder) in the event of a particular event, such as an earthquake or a hurricane of a certain magnitude. Events or parameters are often indicated by an official, well-established index for the type of event, such as the Richter scale for earthquake magnitude or the Saffir-Simpson scale for hurricanes. For this reason, parametric coverage is also called indexed insurance. Parameters can be determined by other objective factors, such as the degree of physical damage, and they are usually limited to a specific period and geographical area. The parties may also develop hazard parameters individually or in combination based on wind, storm, rain (or lack thereof) and other natural and man-made factors.

Literal Meanings of Parametric Insurance

Parametric:

Meanings of Parametric:
  1. Relevant or described in one or more parameters.

Insurance:

Meanings of Insurance:
  1. An agreement in which the corporation or state guarantees compensation for certain damages, injuries, illnesses or deaths in exchange for certain premiums.

  2. Something that protects against possible accidents.

Sentences of Insurance
  1. Jacket hanging behind the seat, protected from air conditioning