AS Jamaica faces increasing climate volatility, business leaders are being urged to rethink how they manage financial risk and recovery after extreme weather events.

That message was reinforced at the parametric insurance seminar hosted by Fraser, Fontaine & Kong (FFK) last Thursday.

The seminar brought together senior executives, insurers, and risk professionals to examine how parametric insurance can support faster recovery in a climate-exposed economy.

“Climate risk in Jamaica is no longer theoretical,” said Gerard Fontaine, president of Fraser, Fontaine & Kong.

“The real question for businesses today is not just whether they are insured, but how quickly they can access funds after disruption.”

Unlike traditional insurance, parametric insurance provides payouts once pre-agreed, measurable triggers such as wind speed or rainfall levels are met, allowing faster access to liquidity following qualifying events.

“After a storm, payroll, utilities, and loan obligations do not stop,” Fontaine said. “Delays in liquidity can extend recovery time and increase financial strain.”

The seminar also highlighted real-world applications, including Jamaica’s experience following Hurricane Melissa last October in which parametric payouts were triggered shortly after the agreed parameters were met.

“That experience showed how quickly liquidity can be unlocked once triggers are reached,” said Martine Fontaine, senior executive director at FFK.

“When structured properly, parametric insurance provides speed and certainty when businesses need it most.”

Speakers stressed that parametric insurance is designed to complement, not replace, traditional coverage by supporting immediate financial response while claims are processed.

“Our focus is on helping decision-makers understand when and how this solution fits. As climate volatility accelerates, businesses must adapt how they think about risk and financial readiness,” Fontaine added.

The seminar concluded with a panel discussion featuring reinsurers, underscoring the growing relevance of parametric insurance for climate-exposed markets like Jamaica.