The payment is an early example of the potential for parametric insurance to help people receive aid faster after natural disasters.
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CCRIF to pay Haiti $20m for Matthew Damages
CCRIF’s parametric insurance products are insurance contracts that make payments based on the intensity of an event (for example, hurricane wind speed, earthquake intensity or volume of rainfall) and the amount of loss calculated in a pre-agreed model caused by these events. Parametric insurance enables payouts to be made very quickly after a hazard event. This is different from traditional insurance settlements that require an on-the-ground assessment of individual losses after an event before a payment can be made.
