Example indices

Six sample parametric indices.

Illustrative definitions across natural-catastrophe, climate, agricultural, and energy use cases. Thresholds and payout logic are presentational — these are not market-quoted indices.

Sample definitions for demonstration only. The values below are constructed for the purpose of showing how each component of the framework is specified. They do not represent any live product and should not be used for pricing, hedging, or settlement.

Hurricane Wind Speed Index

A "cat-in-a-box" index that fires when a tropical cyclone's measured peak wind speed within a defined geographic box reaches or exceeds the attachment threshold during the season.

Trigger
1-minute sustained wind speed at storm center
Data source
National hurricane agency best-track record (illustrative)
Period
Atlantic hurricane season, June 1 – November 30
Geographic scope
Cat-in-a-box: 26–30 °N, 80–84 °W
Threshold
Attachment 96 mph · Exhaustion 156 mph
Payout curve
Linear between attachment and exhaustion, capped at limit
Sample payout
Wind speed of 130 mph → ~57% of limit

Rainfall Deficit Index

An index that pays when cumulative seasonal rainfall over a defined area falls below a long-run reference. Common structure for agricultural and water-utility covers.

Trigger
Cumulative precipitation, expressed as a percentage of the 30-year mean
Data source
Gridded satellite precipitation product (e.g., 0.1° daily)
Period
Defined growing season (e.g., May 1 – August 31)
Geographic scope
Administrative polygon, area-weighted mean
Threshold
Attachment at 80% of mean · Exhaustion at 50% of mean
Payout curve
Linear inverse: payout rises as rainfall ratio falls
Sample payout
Rainfall at 65% of mean → 50% of limit

Wildfire Severity Index

An index built on detected fire activity within a defined region, combining burned-area extent with a severity component.

Trigger
Cumulative burned area within scope, in hectares
Data source
Satellite active-fire and burned-area product
Period
Fire season (e.g., May 1 – October 31)
Geographic scope
Named county or watershed polygon
Threshold
Attachment 5,000 ha · Exhaustion 50,000 ha
Payout curve
Step: 4 tiers (25% / 50% / 75% / 100% of limit)
Sample payout
Burned area of 22,000 ha → 50% of limit (tier 2)

Heat Stress Index

A climate-risk index that counts days exceeding a wet-bulb globe temperature threshold within a region, applicable to outdoor workforce, livestock, and energy-demand exposures.

Trigger
Number of days with daily-max WBGT ≥ 32 °C
Data source
Reference station network or reanalysis grid
Period
June 1 – August 31
Geographic scope
Single named station or area-mean over polygon
Threshold
Attachment 10 days · Exhaustion 40 days
Payout curve
Linear between attachment and exhaustion
Sample payout
22 days of exceedance → 40% of limit

Crop Drought Index

A composite index combining vegetation health and rainfall anomaly to approximate drought stress on field crops.

Trigger
Vegetation Health Index (VHI) value, 0–100 scale
Data source
Satellite NDVI and surface temperature composite
Period
Critical growth window (e.g., 60-day flowering window)
Geographic scope
Insured field polygon or county aggregate
Threshold
Attachment VHI ≤ 35 · Exhaustion VHI ≤ 15
Payout curve
Linear inverse, payout rises as VHI falls
Sample payout
VHI of 25 → 50% of limit

Energy Demand Shock Index

A degree-day index used to hedge unusual heating or cooling demand exposure for utilities, retailers, and large industrial buyers.

Trigger
Cumulative cooling degree days (CDD), base 65 °F
Data source
Reference weather station settlement product
Period
Summer cooling season (June – August)
Geographic scope
Named primary station for the load zone
Threshold
Attachment 1,150 CDD · Exhaustion 1,450 CDD
Payout curve
Linear: $X per CDD above attachment, capped at limit
Sample payout
1,330 CDD → 60% of limit

Each example follows the same disclosure pattern set out on the methodology page. Use the calculator to model how a payout would scale across alternative thresholds and curves.