India to introduce parametric insurance for climate-related disasters
India is looking at a new kind of insurance that pays out automatically when things like heatwaves or floods hit certain levels—no paperwork or long waits.
The idea is to help people get support faster and reduce the government's disaster costs by letting insurers handle more of the risk.
Insurance could mean faster help when it's needed most
This move builds on successful pilot projects in Rajasthan and Nagaland, where quick payouts really helped people during tough weather.
With India ranking sixth globally for climate vulnerability—and facing over 400 major weather disasters between 1993 and 2022, causing more than 80,000 deaths and $180 billion in losses—this insurance could mean faster help when it's needed most.
Plus, it puts India in step with how other countries are using smart financial tools to deal with climate risks.