Sales Deck Copyright Riskwolf AG Dealing With Four Key Challenges In Parametric Insurance Why Are Insurers Not Adopting The Parametric Model Yet? 8 Traditional Underwriting Not Applicable Parametric insurance involves complex modeling and data analysis. Underwriters must be equipped with data science tools and deep data understanding for external events. Knowledge Locked At Reinsurance Insurers depend on reinsurers and other partner to underwrite parametric insurance. Limited internal knowledge about parametric models and applications. Data Availability and Quality Obtaining accurate and timely data can be challenging, especially in certain risks and regions. Unavailable, Inaccurate or incomplete data affects the reliability of parametric insurance. Basis Risk Parametric insurance may not align perfectly with actual losses (basis risk). Potential discrepancies between actual losses and predefined triggering criteria.