Tackling basis risk in parametric insurance
    
        
            
            Source: Asia Insurance Review | May 2025
         
     
    
    
    
    
    
    
    
    Parametric triggers face the challenges of basis risk, data reliability, regulatory factors and climate change impacts, highlighting how insurers refine statistical models to improve accuracy and determine its effectiveness and alignments with actual financial losses.
 
 
    
    
    
    
    
	
        
		
        
            
                
				
					
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