The Daily Brief India wants to insure against climate change
Oct 8, 2025
India explores innovative funding for disaster recovery through parametric insurance, offering faster payouts and broader coverage tailored for climate risks. Discover the challenges traditional insurers face and the advantages of this new model. Additionally, the unlisted share market sees a surge of retail investors, impacting pricing and exposing risks amid regulatory scrutiny. Learn how structural changes have altered this landscape and why investors remain drawn to potential pre-IPO gains despite the dangers involved.
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Buy Parametric Cover To Smooth Budgets
- Use parametric policies to deliver funds quickly after disasters and kickstart relief.
- Budget for predictable premiums to smooth public expenditure instead of surprise large payouts.
Indexes Can Expand Coverage
- Parametric schemes can extend coverage to remote or informal communities using index proxies.
- Clear objective triggers increase transparency and reduce politicized allocation of relief.
Early State Pilots Exist
- Some Indian states already run parametric pilots like Nagaland's rainfall program.
- Rajasthan and Gujarat even offer heatwave cover linked to temperature for women.