> For the complete documentation index, see [llms.txt](https://adamdavidlong.gitbook.io/lawsnap-guide-to-smart-contracts/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://adamdavidlong.gitbook.io/lawsnap-guide-to-smart-contracts/applications/smart-contract-use-cases/insurance/in-general-parametric-insurance.md).

# In General: Parametric Insurance

## Executive Summary: Parametric Insurance

* Smart Contracts work very well with a (relatively) new type of insurance called "parametric insurance"
* Under a Parametric insurance contract, the payout is triggered automatically if and when certain objective criteria are met
* Many buyers and sellers of insurance are eager to explore parametric insurance, because it has the potential to vastly reduce costs and delays 
* Innovative players are looking for new ways to harness new data to help provide new types of insurance via parametric insurance

## Companies that provide parametric insurance

For a list of companies to watch in the parametric space see [Parametric Insurance Part Two: Ten Companies Worth Knowing About](https://www.linkedin.com/pulse/parametric-insurance-part-two-ten-companies-worth-knowing-grant/), by Matthew Grant (2020-04-30)