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Hurricane wind cover
Small business cover paying on wind speed near the insured location.
Insurtech / Parametric Insurance
Parametric insurance software, from trigger to payout
A parametric policy is only as good as the number it pays on. Agnotic Technologies builds the trigger definitions, data feeds and payout logic, on a blockchain or a conventional rules engine, so every payout can be traced to the reading that caused it.
Triggers
From named data sources
Feeds
Checked and versioned
Payouts
Smart contract or rules
Trusted by global innovators
Industry Overview
What is parametric insurance software?
Parametric insurance software is the system that defines an index trigger, reads the data source that reports it and calculates a predefined payout when the trigger is met. Agnotic Technologies builds it for carriers, MGAs and reinsurers: trigger configuration, data feed checks, payout logic as smart contracts or rules, and a full audit trail.
Industry Challenges
Where does a parametric product break?
Rarely in the payout formula. Usually in the data around it.
The policy wording names a data source, but the code reads a different product from the same agency.
A feed publishes a preliminary value and later revises it, and the system has already paid on the first number.
The feed goes quiet during the very event the cover exists for, and there is no rule for what happens next.
The trigger is measured at one point while the insured's loss spreads across a site, and the buyer was never shown the gap.
A smart contract has no pause or upgrade path, so a bug found after launch cannot be fixed safely.
A reinsurer asks how a payout was calculated, and the answer is a spreadsheet.
Decision table
Which data source fits each trigger type?
We complete this table with your product and actuarial teams for every trigger. The data source column must match the policy wording exactly, including the product and version.
| Trigger type | Typical data source | When the value arrives | What can go wrong |
|---|---|---|---|
| Wind speed at a location (hurricane) | A named meteorological agency product, such as National Hurricane Center advisories or its post-analysis best track | Advisories during the storm; the best track after post-storm analysis | The two products can differ, so the wording must say which one counts; basis risk when the site sits away from the track |
| Earthquake shaking intensity | A seismic network product such as USGS ShakeMap | Near real time after a significant earthquake | If the agency publishes a revised map, the wording must say which version counts; shaking at the grid point can differ from the building |
| Rainfall over a period (drought or flood) | Gauge networks or satellite rainfall estimates from a named provider | Daily, or at the end of the measurement period | Gauge outages, gaps filled by estimates, and grid cells that do not match the farm or site |
| Flight delay | Flight status data from a named aviation data provider | Shortly after the scheduled arrival | Feed outages, retimed schedules and cancellations that need their own rule |
Our Approach
Should the payout logic run on a blockchain?
Sometimes. The choice depends on who has to trust the calculation, not on the technology.
Rules engine
Fits most carrier and MGA products. Payout tables sit in a versioned rules service, payments go through normal banking and the audit trail lives in your database.
Smart contract
Fits when several parties, such as a pool of insurers or a development partner, must see the same calculation without trusting one operator. It needs an oracle design, an audit and pause controls.
Hybrid
Readings and calculations are anchored on-chain while payment runs through banking rails. Useful when transparency matters but policyholders do not hold wallets.
Capabilities
What do we build for parametric products?
Our smart contracts services for insurance sit inside this list. General blockchain engineering for finance is covered on our blockchain software development page.
Trigger configuration
Index, location or area, thresholds, payout table, data source and product version, each with effective dates.
Data feed connectors
Agency APIs and files read on a schedule, with raw values stored exactly as received.
Feed health monitor
Latency, gaps and revisions tracked per feed, with alerts to the calculation agent.
Oracle service
Signed readings submitted to a contract, from more than one source where the wording allows.
Payout engine
Rules service or smart contract, tested against the same event history either way.
Basis risk disclosure
A map of the trigger location against the insured site and a plain explanation shown at sale.
Smart contract controls
Role-based admin, pause, timelocked upgrades and an independent audit before launch.
Event and bordereau reports
Event, reading and payout reports for reinsurers and regulators from the same records.
How It Works
How does a payout move from reading to bank account?
The path we build for every event. Each step writes a record a reinsurer can follow.
Event detected
The calculation agent's monitor sees a qualifying event in the named source and opens an event record.
01
1
Reading captured
The raw value, source, product version and timestamp are stored with a hash, so the reading cannot change silently.
02
2
Checks run
Completeness, plausibility and the revision window are checked, and the feed outage rule applies if data is missing.
03
3
Payout calculated
The rules engine or smart contract applies the payout table in force for that policy.
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4
Approval and release
Where your process requires it, a claims person approves before payment goes out by bank transfer or on-chain.
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5
Engineering Stack
Data sources and payout technology we work with
Picked per product, with the policy wording deciding the data source.
Data sources
Meteorological agency productsSeismic network productsGauge and satellite rainfall dataFlight status data
Payout logic
Versioned rules serviceSolidity smart contracts on EVM chainsOracle networks or a signed oracle service
Data
PostgreSQLObject storage for raw readingsHashes of stored readings
Platform and security
Role-based access and SSOKey management and multi-signature walletsAudit loggingCloud hosting
Measured Impact
What should a parametric operations team watch?
Measures on the calculation agent's dashboard.
Latency
Event to reading
Time from the event to a usable reading from the named source.
Revisions
Readings changed
Readings revised by the source after capture, by feed.
Pending
Events in checks
Events waiting on completeness or revision checks.
Released
Payouts paid
Payouts released, by product and event.
Use Cases
Which parametric products do we build software for?
Each starts with one trigger, one data source and one payout table.
02
Earthquake shaking cover
Homeowner or SME cover paying on shaking intensity at the site.
03
Rainfall index cover
Drought or excess rain cover sold through a distribution partner.
04
Flight delay cover
Cover sold at checkout that pays when a flight arrives late.
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Event weather cover
Cover for outdoor events against rain on the day.
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Smart contracts for startups
An insurtech startup's first parametric product, built so a fronting carrier and reinsurer can audit it.
Integrations
Which systems does parametric insurance software connect to?
Data comes in from named sources; payouts and reports go out to insurers, partners and reinsurers.
Trigger data
Meteorological and seismic agenciesSatellite and gauge data providers
Policies and limits
Policy administration system
Payouts
Payments and banking
On-chain payouts
Blockchain network and wallets
Event reports
Reinsurers
Sales and customer data
Distribution partners
Reporting
Data warehouse
What we check
Which smart contract controls must pass before launch?
If payouts run on-chain, we treat these as release gates, not nice-to-haves.
Access control
- Admin functions limited to named roles and multi-signature wallets
- No single key can change a payout table
- Role changes emitted as events and monitored
Oracle safety
- Readings signed by the calculation agent
- Bounds checks reject implausible values
- A stale reading cannot trigger a payout
Change and pause
- A pause function, with who may use it written down
- Upgrades pass through a timelock and a review
- Old and new versions tested on the same event history
Assurance
- Independent smart contract audit before launch
- Tests mapped to the OWASP Smart Contract Top 10
- Past events replayed through the contract before go-live
Compliance-First Development Services Backed by Global Standards
We build secure, scalable products designed for privacy, interoperability, and regulatory readiness from day one across every sector we serve.
General Data Protection Regulation
Implement lawful consent flows, data minimization, and secure processing for global data privacy.
Service Organization Control 2
Verified controls for security, availability, and confidentiality of enterprise data systems.
Information Security Management
Adhering to the international gold standard for managing information security risks.
Our Edge
Why Global Leaders Choose Us
We combine deep technical expertise with industry-specific knowledge to deliver solutions that aren't just functional, but transformational.
Enterprise-Grade Security
We implement rigorous security protocols and compliance standards (HIPAA, GDPR, SOC2) across all industrial solutions to protect sensitive data.
High-Performance Scaling
Our architectures are built to handle massive data loads and user bases, keeping performance steady whether you're serving ten or ten million.
Accelerated Time-to-Market
Using our suite of internal tools and proven frameworks, we cut setup work so your first release reaches users sooner.
Embedded AI Integration
Beyond simple wrappers, we build deep-learning integrations and predictive analytics directly into the core of your industry-specific workflows.
Engagement Model
How does a parametric build run?
We start from the policy wording and the data source it names. We agree a fixed first release on the scoping call.
01
Scoping call
The product, the trigger, the data source and whether payouts run on-chain.
02
Trigger and feed design
Thresholds and payout tables from your actuaries, mapped to the exact data product.
03
Historic replay
Past events run through the logic to show which would have paid.
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Fixed-scope first release
One trigger, one product, monitored end to end.
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Launch and monitor
Feed health, revisions and payouts watched under agreed support.
Facts and sources
Which standards and data sources shape parametric software?
Short facts we design around, each linked to its primary source.
The BIS Financial Stability Institute and the IAIS describe a parametric index as an objective measure reported by an independent third party, neither the insured nor the insurer, and correlated to the insured financial loss.
Source: BIS FSI and IAIS, FSI Insights No. 62, Uncertain waters (December 2024)Basis risk occurs when a parametric index does not perfectly correlate with the insured's actual losses, and can come from data quality, geographical granularity, model accuracy, policy structure and temporal granularity.
Source: BIS FSI and IAIS, FSI Insights No. 62, Box 2USGS ShakeMaps, produced by the Earthquake Hazards Program with the regional seismic networks, provide near-real-time maps of ground motion and shaking intensity following significant earthquakes.
Source: U.S. Geological Survey, ShakeMapThe National Hurricane Center's Tropical Cyclone Reports include the post-analysis best track of six-hourly positions and intensities, and its HURDAT2 dataset gives six-hourly location, maximum winds and central pressure in a comma-delimited text format.
Source: NOAA National Hurricane Center, Data ArchiveThe OWASP Smart Contract Top 10 (2025) lists access control vulnerabilities first and price oracle manipulation second, describing how tampering with or controlling oracle feeds can change contract logic.
Source: OWASP Smart Contract Top 10
Voice of success
We don't just build products; we forge lasting partnerships. See how we've helped industry leaders transform their vision into technical reality.
“I can clearly see how Agnotic has a unique way of handling end-to-end development. They are always active on quick chat and provide support quickly.”
Aaron Phelan
Founder, Benchmark
“Agnotic combines deep technical expertise with strong domain knowledge. They understand the business context, anticipate challenges, and make collaboration smooth and effective.”
John Pasmore
Founder, Latimer
“Agnotic is the best technical team we evaluated. Their engineering excellence made our work dramatically easier and allowed us to stay focused on what matters most for maternal care outcomes. They took full ownership of the technical execution, and we are always happy to continue working together.”
Kim Smith
Founder, My Lauren
Related pages
Related insurance and blockchain services
This page covers parametric triggers and payouts. These pages cover the work around them.
Blockchain software development
Smart contracts, custody and settlement for financial services.
Property and casualty insurance software
Policy, rating and filings for indemnity P&C products.
Microinsurance software
Low-cost cover sold through partners, often with index triggers.
Insurtech software development
Our wider insurance practice for carriers, MGAs and startups.
More in Insurtech
More Insurtech Solutions
Explore other production-grade engineering platforms we deliver across insurtech.
Cross-Industry Reach
The Same Engineering Patterns, Across Other Industries
The technical patterns behind this platform translate naturally into adjacent verticals.
Frequently Asked Questions
Basis risk is the gap between what the index pays and what the insured actually loses. The software shows the buyer where the trigger is measured against their site, explains in plain words when a loss may not pay, and records that the disclosure was shown.
No. Most products run well on a versioned rules engine and normal payments. A smart contract helps when several parties must share one calculation without trusting a single operator.
The policy wording should set a fallback, such as a backup source or a waiting period. We build that rule into the payout engine, alert the calculation agent and log every decision taken while the feed was down.
The number of triggers and data sources, whether payouts run on-chain, the oracle design, the independent audit and the reporting reinsurers need. The audit alone depends on contract size, so we estimate only after the trigger design is agreed.
With role-based admin, a pause function, upgrades behind a timelock and review, and tests that replay past events through both the old and the new version before any change goes live.
No. Your actuaries set triggers and payout tables, and your compliance team handles filings. Agnotic Technologies builds the software that applies them and keeps the evidence.
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