Parametric Insurance: What is the Meaning of Parametric Insurance?
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
Meanings of Parametric:
Associated or expressed in one or more parameters.
Sentences of Parametric
The parameters used in the parametric bootstrap simulation are phylogenetic trees derived from interconnected protein sequences and residual alternative matrix.
Meanings of Insurance:
The process or arrangement under which a company or government agency guarantees some loss, injury, illness or death in return for premium payments.
Anything that provides protection against possible emergencies.
Sentences of Insurance
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