Haynes Boone Counsel Joe Balice spoke with Law360 as insurers are increasingly adopting parametric insurance policies as one means of offsetting broader systemic challenges to the industry — even as questions persist about the scope and regulation of these products, which offer automatic payouts.
Balice told Law360 that the appeal of a quick payout is clear when compared with traditional policies, which often require insureds to hire professionals to calculate loss, entail out-of-pocket payments and can take months or longer to resolve.
"The allure of this product, from a policyholder standpoint, is the expediency on the claim side," he said. "The idea of, 'Let's cut to the chase, this event happened,' getting to payments quicker, and getting the benefits that you paid for with less time and less expense."
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