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Early-stage talks begin on climate-linked insurance

Financial Express Ahmedabad

|

October 07, 2025

PARAMETRIC MODEL

- ASHWIN MANIKANDAN

THE CENTRALGOVERNMENT has begun early-stage talks with local insurers about designing a nationwide climate-linked insurance programme aimed at simplifying the payout process after extreme weather events such as heatwaves and floods.

The scheme would adopt a parametric insurance model, where policyholders receive a predetermined payout when specific weather thresholds such as rainfall, temperature or windspeed are breached.

Should the discussions bear fruit, Indiaamong the nations most prone to extreme weather events - could become one of the first major economies to roll out such a programme.

FLERE HISTORIER FRA Financial Express Ahmedabad

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