BusinessAugust 24, 2026

parametric

pair-uh-ME-trik

Definition

Refers to insurance products where payouts are triggered by pre-agreed objective data metrics (like pollution levels) rather than traditional damage assessment.

Etymology

The word is derived from the Greek 'para-' (beside) and 'metron' (measure), combined with the suffix '-ic' to describe a system defined by its parameters or measurable variables.

In the news

The article uses the term to describe HazeShield, a specific insurance product that pays out based on pollution-index readings, contrasting this automated approach with complex claims involving political risks.

Indonesia's asset-seizure risk lacks the cover haze already has

Read the full article ↗

Insurance Business

Related words

accretive

Describes a transaction or strategy that increases a company's earnings per share (EPS)…

Business

agronomic

Relating to the science of soil management and crop production.

Business

agronomy

The science and technology of producing and using plants for food, fuel, fiber, and land…

Business

bioplastics

Plastic materials produced from renewable biomass sources, such as vegetable fats, oils,…

Business

commoditized

To make a product or service widely available and easily interchangeable with others,…

Business

disintermediation

The removal of intermediaries or middlemen from a supply chain, allowing customers to…

Business

Learn a word like this every day

Meet one new word every morning.

Newspoken pulls one carefully chosen word from the day’s news — with a clear definition, context, and light review that makes it stick. Get it on your phone.