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Top executives lack knowledge of parametric risk insurance


A survey found that just 5% of top executives of big corporations used parametric triggers for risk management while only 4% used catastrophe bonds due to a lack of understanding about the benefits of alternative strategies, reports. The survey by U.S.-based Marsh & McLennan Cos. Inc. urged insurers and reinsurers to use data-driven risk modeling including analytics, artificial intelligence and machine learning to increase use of parametric risk products.

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