As catastrophes continue to accelerate and disrupt existing social, economic, environmental, and political systems globally, many individuals, businesses, and governments are looking for solutions to adapt to these disruptions and build resilience. The effect of catastrophes has been more evident in developing countries, where the population is underinsured, and governments have inadequate resources to manage climate change. Parametric insurance is among the emerging innovative instruments to build societies’ resilience. In such insurance, claims are settled fast, and payouts are activated by parametric triggers unlike in traditional insurance where claims are tied to the actual losses and must be assessed before a claim is concluded. Parametric insurance comes with its key challenges namely the design and management of basis risk. Therefore, we seek to address this problem by answering the questions: What is needed to include in a probabilistic framework for the design of parametric non-life insurance for multi-hazard risk, how can insurance availability increase for people in developing countries, and what barriers may exist before adaptation is possible?

In our ongoing efforts, we are developing a series of insightful articles slated for publication in 2024. These articles delve into various dimensions of parametric insurance, offering comprehensive insights and policy implications for stakeholders.

Through rigorous research and collaboration, we aspire to reshape disaster risk financing paradigms and foster resilient communities in the face of calamities. Stay tuned for the impactful insights and transformative solutions our project aims to deliver.