Insight
Parametric insurance: A captivating solution
Parametric policies, which pay based on the magnitude of an event, can bridge coverage gaps that are difficult to insure with a traditional indemnity policy.
Providers are uniquely situated to both direct and/or provide care for those in the healthcare delivery system through establishing their own health plans or contracting with existing payers. Providers need to weigh the incentives and challenges of each option and understand how they would be impacted. A provider owner should perform feasibility studies and model the interplay with a provider-sponsored health plan versus various value-based care contracts to fully understand opportunities and risks.
Insight
Parametric policies, which pay based on the magnitude of an event, can bridge coverage gaps that are difficult to insure with a traditional indemnity policy.