PARAMETRIC Insurance offers a modern approach to risk management by providing insurance coverage based on specific factors rather than complex evaluations. Unlike traditional insurance that relies on subjective assessments, parametric insurance utilizes factual data and numerical parameters such as wind speed, earthquake strength and rainfall amounts to determine risks. When these predefined parameters are met or exceeded, policyholders automatically receive predetermined payouts, even if they have not incurred actual damage.

The significance of parametric insurance in the Philippines cannot be overstated, considering our country's susceptibility to natural disasters like typhoons, earthquakes and droughts. These events often result in extensive damage and financial losses for individuals, businesses, and the government, which are frequently difficult to bear without proper preparation.