Parametric Insurance: Using Objective Measures to Address the Impacts of Natural Disasters and Climate Change

Environmental Claims Journal, Vol. 23, Nos. 3-4, 2011

WVU Law Research Paper No. 2014-7

14 Pages Posted: 14 Sep 2014 Last revised: 30 Sep 2014

See all articles by James Van Nostrand

James Van Nostrand

West Virginia University - College of Law

John Nevius

Independent

Date Written: May 1, 2011

Abstract

Parametric insurance is a promising alternative to traditional insurance when it comes to addressing catastrophic weather events and their impact on developing nations. Where available, traditional insurance is expensive and can involve protracted claim adjustment. Parametric insurance, on the other hand, provides coverage monies automatically upon the existence of certain objective weather-related parameters based upon a set formula. This model has been shown to work in the Caribbean Basin, but requires international cooperation in pooling, measuring, and managing risk. The immediate availability of emergency-response funds can be crucial in mitigating the impacts of climate change and related extreme weather events.

Keywords: climate change, insurance

Suggested Citation

Van Nostrand, James and Nevius, John, Parametric Insurance: Using Objective Measures to Address the Impacts of Natural Disasters and Climate Change (May 1, 2011). Environmental Claims Journal, Vol. 23, Nos. 3-4, 2011; WVU Law Research Paper No. 2014-7. Available at SSRN: https://ssrn.com/abstract=2495557

James Van Nostrand (Contact Author)

West Virginia University - College of Law ( email )

101 Law School Drive
Morgantown, WV West Virginia 26506
United States
(304) 293-4694 (Phone)
(304) 293-6891 (Fax)

HOME PAGE: http://energy.law.wvu.edu/

John Nevius

Independent

No Address Available

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