Parametric Insurance FAQ

Answers to the most common questions about parametric insurance and how ParaSure works.

What is parametric insurance?

Parametric insurance pays out automatically when a pre-agreed, measurable event occurs, such as wind speed exceeding 74 mph or rainfall dropping below 1 inch in 30 days. Unlike traditional insurance, there is no claims adjuster, no dispute process, and no paperwork. If the trigger is hit, the payout is issued.

How is parametric insurance different from traditional insurance?

Traditional insurance reimburses you for actual losses, which requires filing a claim, proving damage, and waiting through an adjuster review that can take weeks or months. Parametric insurance pays based on a measurable trigger, not the actual loss amount. You know exactly what triggers a payout and how much you will receive before you buy.

How do weather triggers work?

A trigger is a specific, objective threshold written into your policy. For example: wind speed at the nearest station exceeds 58 mph, or accumulated rainfall drops below 0.5 inches in any 14-day period. Weather data is pulled in real time from NOAA, NWS, and satellite networks. When the threshold is crossed, the payout triggers automatically.

How fast are payouts?

ParaSure's settlement is near-instant from trigger confirmation. Because the payout is based on objective data rather than a claim review, there is nothing to debate. The smart contract executes and funds transfer automatically.

What types of weather events are covered?

ParaSure covers hurricanes and tropical storms, excess or deficit rainfall, extreme heat or cold, high winds, hail, fog and low visibility, snowfall and ice, and lightning. Coverage is tailored to your specific industry and geographic exposure.

What businesses can get covered?

Any business with meaningful weather exposure: agriculture, outdoor events and festivals, construction, hospitality and tourism, retail, renewable energy, logistics and transportation, and recreation.

How is the price determined?

Pricing is driven by ParaSure's proprietary AI risk assessment, a patent-pending model that factors in your location, industry, historical weather data, and the specific trigger thresholds you choose.

What role does blockchain play?

Blockchain smart contracts handle the payout execution layer. When a trigger is confirmed, the contract automatically executes and transfers funds with no manual approval and no counterparty risk.

How can insurance brokers work with ParaSure?

Brokers can refer weather-exposed clients and earn commission on every bound policy. ParaSure also offers the WeatherSure AI™ Agent, an autonomous agent that handles the full parametric lifecycle on behalf of a broker: sourcing, quoting, binding, and settlement.