Parametric insurance

{
  "id": "MLC-T-INS-002487",
  "term": "Parametric insurance",
  "field": "Insurance and risk management",
  "definition": "A type of insurance that pays out a pre-agreed amount if a specific, measurable event occurs, rather than indemnifying actual losses. The payout is triggered when a defined parameter, such as wind speed, earthquake magnitude, or rainfall level, reaches a predetermined threshold. This eliminates the need for traditional loss adjustment processes, speeding up claims payments.",
  "url": "https://mlchart.com/terminology/insurance/parametric-insurance/"
}