Parametric insurance to build financial resilience

UNDP and Generali are partnering to increase awareness and uptake of parametric insurance as a solution to financially protect vulnerable communities when risks, hazards, and shocks strike.

Unlike traditional insurance, which requires a loss to occur, parametric policies are triggered by specific events like a certain amount of rainfall or the magnitude of an earthquake. Leveraging new technologies and improved data accuracy to assess an event's intensity, once the threshold is met, quick payouts allow faster recovery for affected communities.

By providing immediate financial relief, parametric insurance can help bridge the financial protection gap and build global financial resilience.