Parametric Insurances – Characteristics and Legal Nature

This article deals with the topic of parametric insurances, which are a novelty on the insurance market and which are an innovative reaction of insurers to the need for solutions tailored to specific features of selected types of insurance risks. The structure of this insurance product departs from the classic notion of insurance contract, which gives rise to legal discussions on legal nature thereof. The discussions are conducted not only by representatives of Polish doctrine and practice, but also in many other European countries and in the United States. The article attempts to identify the characteristics of parametric insurances and to explain their functioning and distinctive features when compared with insurances generally known as traditional. In addition, the authors indicate the risks resulting from identifying the non-indemnity nature of these insurances, including where a claim coincides with another insurance contract. They also give some examples of using parametric insurances on the Polish and foreign markets.