Parametric solutions gain popularity as nat cat frequency increases

Annacel Natividad, chief risk officer at Pilmico Foods Corp., said that parametric solutions have gained popularity in the recent years due to technological advancements and the increasing frequency and severity of natural disasters and other catastrophic events, Strategic Risk Asia Pacific reported. Mr. Natividad, who is also the incoming chairperson of the Pan-Asia Risk and Insurance Management Association, added that simplicity, pre-defined triggers, and fast payouts are the key advantages of a parametric approach to extraordinary natural catastrophe risks.