Air quality parametric insurance

Covers the losses when fine-particle pollution (PM2.5, PM10) or the air-quality index passes an unhealthy threshold.

Index, trigger and payout

Payout

Illustrative series. The payout is released when the index crosses the trigger agreed in the contract.

How the cover works

What is measured, and when it pays.

Risk covered: Financial loss from poor air quality (PM2.5/PM10/AQI) exceeding an unhealthy threshold.
Parametric trigger: Daily mean/peak PM2.5, PM10 or composite AQI.
Payout: Predefined payout compensating the loss, sized on an 11-tier trigger scale.
Index resolution: Grid cell, daily
Data and model: Gumbel/GEV extreme-value distribution — PM2.5/AQI extreme-value literature.
Typically for: Cities, public bodies & NGOs

Bought by the same clients

Next step

We back-test the index at your site over its full history and come back with indicative terms, before anything is bound.