The Future of Climate Insurance: Parametric Solutions

Climate change is fundamentally reshaping the insurance industry. Traditional actuarial models struggle to price risks in a world of increasing weather volatility. This is where parametric insurance — policies that pay out automatically when predefined conditions are met — offers a transformative alternative. Our portfolio company Descartes Underwriting is at the forefront of this revolution, using satellite data and AI to create insurance products that are faster, fairer, and more transparent.