The last year has presented a watershed moment for our perceptions of risk, as a once-in-a-century pandemic has collided with more widespread climate disruption than ever before. As supply chain issues, business disruption and unpredictable weather has come into sharper focus, the industry is looking to parametric, or index-based, insurance to insure increasingly volatile risks.

By fixing claims payments to pre-determined risk triggers, parametric insurance is able to provide unprecedented certainty and security for the some of the most volatile risks. This week, we ask how far reaching the uptake of parametric insurance will be, and is this the future of risk?