The most persistent misconception, Wilkinson and Berruguete agreed, is that parametric insurance can, or should, replace traditional cover. It does not. Parametric solutions are designed to sit alongside a broader insurance programme, closing specific gaps created by exclusions, high deductibles, limited capacity or the requirement to prove physical damage before a claim can be made. Faster claims settlement, flexibility over how claim proceeds are used and data-driven pricing can provide additional advantages where the product is appropriately deployed.
