R.J. Lehmann on Parametric Insurance
Insurance Journal – ICLE Editor-in-Chief R.J. Lehmann was quoted by Insurance Journal in a story about the state of parametric insurance products in the United States. You can read full piece here.
R.J. Lehmann, an editor-in-chief and senior fellow at the International Center for Law and Economics, explained that parametric insurance has become a structure of choice for emerging countries participating in global or regional risk pools. He sees parametric as a good way for public sector entities to smooth risk and avoid post-disaster legislation scenarios for any number of potential perils.
“It speeds the time to recovery,” Lehmann said, “and in the public sector space, that makes a lot more sense. You don’t really want to have to deal with the courts or complex contractual language. You just want to get the money out as quickly as possible.”