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by Jennifer Gibbs

There’s a new insurer in town – an artificial intelligence-driven parametric insurer, Mythen.

Founded by insurance technology veteran Sandra DeSilva, Mythen “combines advanced AI, machine learning, and remote sensing to provide liquidity and coverage for hard-to-insure risks.” Mythen aims to alter the underwriting and management of natural catastrophe risks.

Mythen’s WindSpeed ^TM product offers up to $500,000 in coverage for named storms, including hurricanes. This type of insurance product has been gaining traction around the world in recent years, and some view parametric insurance as an attractive alternative to some traditional indemnity policies. 

Parametric insurance is a type of policy that covers a predetermined set of conditions -- instead of the actual loss sustained. Once an agreed-upon triggering event occurs, the insurer would then tender payment to the policyholder.

As risks evolve and policyholders look for more innovative and efficient ways to transfer risk, parametric insurance products are expected to gain more traction in the future.

Time will tell whether parametric insurance is the wave of the future, or merely an emerging trend, but until then: Welcome to the insurance party, Mythen!