What "Parametric" Means in Practice

Parametric insurance differs from traditional insurance in a few important ways.

Traditional vs Parametric

flowchart LR
    subgraph Traditional["Traditional Insurance"]
        direction TB
        T1["Customer lodges claim"] --> T2["Assessor evaluates loss"]
        T2 --> T3["Insurer makes<br/>discretionary decision"]
        T3 --> T4["Weeks to resolve"]
    end

    subgraph Parametric["WeatherIt Parametric"]
        direction TB
        P1["Weather data recorded"] --> P2["Trigger threshold<br/>checked automatically"]
        P2 --> P3["Rules-based outcome<br/>— no discretion"]
        P3 --> P4["Fast payout"]
    end

    style T1 fill:#ffebee
    style T2 fill:#ffebee
    style T3 fill:#ffebee
    style T4 fill:#ffebee
    style P1 fill:#e8f5e9
    style P2 fill:#e8f5e9
    style P3 fill:#e8f5e9
    style P4 fill:#e8f5e9

	Traditional Insurance	WeatherIt Parametric
Claim process	Customer lodges claim	No claim needed
Assessment	Loss or damage assessed	No individual assessment
Decision	Discretionary	Rules-based, automatic
Speed	Days to weeks	Fast
Transparency	Variable	Full — data is publicly accessible

What Drives Outcomes

Payouts are based solely on:

Factor	Description
Independent weather data	From official national meteorology sources, fully accessible by the consumer
Pre-agreed trigger conditions	Rainfall thresholds defined at purchase
Objective measurement	No human interpretation or judgement

The Result
Outcomes are predictable, transparent, and fast — creating a compelling consumer experience where customers know exactly what to expect.