P is for Parametric

Cities face ever-stronger heatwaves, yet the collective risk remains uninsured; actuaries have the responsibility to provide a solution. I propose a mutual parametric insurance system serving cities in a network. Payouts are delivered automatically when local temperatures exceed customised thresholds - the same approach applies to other climate risks. The structure should be transparent, with premium contribution answering a few basic and fair principles and well defined payment conditions. It is a small actuarial contribution to the gargantuan task of protecting and connecting a world that is increasingly more exposed and fragmented. In this endeavour, we are in the very good company of past actuaries (in spirit if not in name), and we honour our roots while inventing wings.