Peru develops new parametric insurance regulations for disaster response

The Superintendencia de Banca, Seguros y AFP (SBS) in Peru is developing a regulatory project for parametric insurance. This modality activates coverage automatically when pre-established parameters are met, such as a specific earthquake magnitude or epicenter area, without requiring physical damage assessments or individual inspections.

Eduardo Morón, president of the Peruvian Association of Insurance Companies (Apeseg), noted that this mechanism could reduce operational costs by eliminating the need for verification teams to inspect properties. These savings could potentially result in lower policy costs for users and faster response times following natural disasters.