Parametric insurance is a policy that mitigates the financial impact of severe weather catastrophes like tropical cyclones, earthquakes, and excessive rainfall, which can affect entire countries. In 2020, the FSEC initiated a parametric insurance contract with Gallagher RE, marking the first such initiative in Africa. This agreement targeted earthquake coverage, particularly for uninsured properties and their owners. Over 20 reinsurers, led by major global players, were engaged to provide coverage through Gallagher Re. Approximately $123 billion of this total was covered by the private insurance market ($110 billion) and public insurance entities ($13 billion).
