Supply chain pressures, the COVID-19 pandemic and a climate-induced increase in weather variability have disrupted businesses around the world in recent years.
Organisations are increasingly worried about ‘non-damage business interruption’ (NDBI) losses not covered by traditional insurance. Dozens of events in recent years have caused more than $1 billion USD in NDBI losses, from natural catastrophes to infrastructure failures.
Not all NDBI events are insurable, but parametric insurance is increasingly enabling coverage for risks that were previously difficult or impossible to insure. This report examines the established and emerging use cases of parametrics for extreme events, weather-dependent industries and supply chains.