Parametric insurance is increasingly gaining global prominence as a popular alternative to traditional insurance covers. Unlike traditional insurance which requires a detailed examination of losses, parametric insurance works on predetermined, objective parameters to assess payouts in the event of a pre-defined specific triggering event like a cyclone, flood, etc. This type of insurance paves the way for quicker disbursements and is immensely useful in areas most vulnerable to natural calamities. Globally, the Indian government was one of the first administrations to account for parametric coverages to help the agriculture sector. Parametric data from local weather stations is used to insure 35 crops across 17 states.