Parametric insurance is an innovative type of insurance that is designed to provide coverage based on predefined parameters or triggers, rather than the actual loss incurred. It is typically used in areas where traditional insurance may be challenging to obtain or may not adequately address specific risks. 

For blockchain-based insurance, parametric insurance is critical and significant design for the Product Manager and the Underwriting Oracle.  We have to provide the bridge that allows these 2 roles to collaborate and deliver outcomes for the community.

The course is clear, parametric insurance provides numerous benefits, the key being:

1. Speedy claims payout: As parametric insurance relies on predefined triggers, claims can be settled quickly once the conditions are met. This can help policyholders access funds for recovery more rapidly than with traditional insurance.

2. Objective triggers: Parametric insurance uses objective, measurable, and verifiable indices or parameters to determine when a payout is due. This reduces the potential for disputes over claims and promotes transparency.

3. Customization: Parametric policies can be tailored to the specific needs of policyholders, such as covering certain events or geographic areas. This allows for better alignment of coverage with the actual risks faced by the insured party.

4. Financial planning and risk management: Parametric insurance can be used as a supplement to traditional insurance or as a standalone product, helping organizations and individuals to better manage their financial risks and improve their overall risk management strategy.

5. Coverage for hard-to-insure risks: Parametric insurance can provide coverage for risks that are difficult to insure through traditional means, such as natural disasters, extreme weather events, or even pandemics. This can be particularly useful for businesses or individuals in high-risk areas.

6. Lower administrative costs: As parametric insurance typically involves less investigation and adjustment, administrative costs can be lower compared to traditional insurance. This can result in more cost-effective coverage for policyholders.

7. Increased availability of insurance: By addressing some of the challenges associated with traditional insurance, parametric insurance can help to make insurance coverage more accessible to a broader range of individuals and businesses.

While parametric insurance offers several advantages, it's important to note that it may not be suitable for all situations. It may not fully cover the total losses incurred, and policyholders need to be aware of the specific parameters and triggers outlined in their policy.