Parametric insurance companies can use Ilika’s Earth Observation Indices (EOI) to trigger insurance payouts in response to specific, predefined events. This type of insurance provides policyholders with a predetermined payout in the event of a covered loss, such as a natural disaster. By using EOI, parametric insurance companies can provide faster and more accurate payouts to policyholders in the event of a covered loss.
- Trigger Event Identification: EOI can be used to identify trigger events, such as the extent of a hurricane or the severity of a drought. This information can be used to trigger insurance payouts, providing policyholders with the financial support they need in the aftermath of a covered loss.
- Payout Calculation: EOI can be used to calculate the amount of the insurance payout. For example, satellite imagery can be used to estimate the extent of crop damage caused by a drought, and this information can be used to calculate the amount of the insurance payout.
- Fraud Detection: EOI can be used to detect fraud, such as false claims submitted by policyholders. For example, satellite imagery can be used to verify the location and extent of damage caused by a hurricane, and this information can be used to detect false claims.
- Improved Accuracy: By using EOI, parametric insurance companies can provide faster and more accurate payouts to policyholders. This can help to build trust and credibility with policyholders and improve the overall efficiency of the insurance process.
Overall, by using Ilika’s EOI, parametric insurance companies can provide faster and more accurate payouts to policyholders in the event of a covered loss, helping to build trust and credibility with policyholders and improve the overall efficiency of the insurance process.