Parametric insurance removes the claims adjuster and hands the job to a data feed
The elegant idea: if a measurable event crosses a threshold — wind over 150km/h, rainfall under a level — the policy pays automatically, no assessment, no dispute. But the whole product is now the trigger's data source. That feed alone decides whether millions get paid, so every weakness in it becomes a weakness in the policy. The defining risk is basis risk: the trigger fires but the insured had no loss, or they're wiped out and the trigger stays quiet because the reference station was 30km away. It's a data-resolution problem. Parametric doesn't remove rigor — it moves all of it to the front, where a bad data choice is baked into every policy you write. Full write-up → https://intellibooksinsurance.blogspot.com/2026/07/parametric-insurance-lives-or-dies-on.html
