Page 45 - The Insurance Times January 2025

must be cleared before the rainy season to prevent it from awareness and transparency.
forming mud flows and causing severe damage to embank-
ments, bridge pillars, and other structures. Ensuring Non-Political Interference: The assessment of ex-
isting constructions and the approval of new ones must re-
Adopting Special Construction Standards: In flood-prone main free from political influence to maintain integrity.
areas, buildings, industries, bridges, and roads must adhere
to specific construction standards to prevent soil erosion and Control Information:
protect the foundations of these structures.
Flood-prone areas such as Kosi, Ganga, Mahananda, and
Damodar must be equipped with electronic monitoring sys-
Diverting Debris: Efforts should be made to safely divert
tems, and residents living in these areas should have access
flowing debris (e.g., RCC beams, trees, or large objects) to
to real-time information.
minimize its impact on bridge pillars and other constructions,
reducing the risk of collapse.
Role of Insurance Surveyors:
Protective Structures: Bridge pillars should be protected by Insurance surveyors must include loss minimization steps in
walls, and diverters or handlers for debris should be installed every report, offering actionable recommendations for both
upstream of bridges to mitigate potential damage. insured parties and insurers.

Regular Removal of Sediments: Accumulated silt, sand, and Conclusion:
clay from rivers should be removed regularly to maintain The increasing losses caused by mud flow and the impact of
adequate depth and flow. debris on bridges, dams, and other structures highlight the
urgency of addressing these risks. A dedicated committee,
Conducting Stability Checks: All civil constructions, includ- including representatives from general insurance companies
ing houses, shops, industries, roads, bridges, railway lines, and the Indian Institute of Insurance Surveyors and Loss
and electronic towers, must undergo regular stability Assessors (IIISLA), should be formed to study these risks and
checks. The results should be made publicly available for propose actionable solutions.

New Trends in Parametric Life Insurance

P arametric life insurance is gaining traction as a mod- for financial protection against climate-related risks, with
insurers offering rapid payouts without lengthy assessments.
ern solution to address the limitations of traditional life
insurance policies. By linking payouts to pre-agreed triggers
or parameters, such as natural disasters or specific health 3. Expansion into Microinsurance:
metrics, parametric life insurance offers faster claims settle- Parametric life insurance is increasingly being adapted for
ment and enhanced transparency. Recent trends in this space low-income populations through microinsurance programs.
highlight its innovative applications and growing relevance. These policies offer affordable coverage with simple triggers,
such as mortality rates or community health metrics, mak-
1. Technology Integration: ing insurance accessible to underserved groups.
Advanced technologies like AI, blockchain, and IoT are be-
ing used to monitor parameters in real-time. For instance, 4. Personalization of Parameters:
wearables and health monitoring devices are integrated to Insurers are now offering customizable parametric policies
track predefined health conditions, enabling automated trig- tailored to individual needs. For example, triggers based on
gers for claims. Blockchain ensures data integrity, reducing lifestyle, occupation, or geographic risks provide customers
disputes and enhancing trust. with more relevant coverage.

2. Climate-Linked Parametric Policies: These trends indicate that parametric life insurance is evolv-
In regions prone to natural disasters, parametric policies are ing as a key player in the insurance industry, offering inno-
being linked to climate indices, such as temperature, rain- vative, efficient, and inclusive solutions for modern risk man-
fall, or seismic activity. This trend addresses the rising need agement.

40 January 2025 The Insurance Times