Natural disasters already cost the global economy more than USD 300 billion
on average per year as well as having a major impact on people’s well-being. Much of this burden falls on the public sector as governments are usually held responsible for the recovery action plan and funding when a disaster strikes. But how to react quickly in practice, in cases where both government's expertise and budget are weak? Parametric insurance is a solution to solve this issue proactively. This type of insurance uses natural hazard parameters to trigger fast payouts
, providing a quick, flexible and transparent disaster risk financing solution.
AXA Climate provides parametric insurance solutions to all levels of governments, working closely with international institutions such as the World Bank
and the United Nations
through the Insurance Development Forum.
AXA Climate can support in the modelling, design and establishment of such solutions and already acts as a lead reinsurer and technical advisor for many of the major Public-Private Partnerships covering natural catastrophe risks such as the Caribbean Catastrophe Risk Insurance Facility (CCRIF), the Pacific Catastrophe Insurance Company (PCRIC) and the African Risk Capacity (ARC).