Parametric Hurricane Trigger Payout Calculator

Model the cash you unlock when a hurricane hits your parametric trigger. Provide the recorded sustained wind speed and your policy trigger to see the payout per mile-per-hour above threshold, note any cap reached, and subtract deductibles or retentions to reveal the net check.

Measured sustained wind speed from your chosen data source.
Wind speed threshold that activates the payout.
Defaults to $1,500 per mph if blank based on common tiered policies.
Defaults to $500,000 if blank to mirror typical parametric caps.
Defaults to $0 if blank; enter a retention if your policy includes one.

Reference your actual policy wording for definitive payout mechanics. This calculator is for scenario planning only.

Examples

  • 145 mph recorded, 120 mph trigger, $1,500 per mph, $500,000 cap ⇒ Wind above trigger: 25.00 mph • Gross parametric payout: $37,500.00 USD • Deductible/retention applied: $0.00 USD • Net payout released: $37,500.00 USD
  • 165 mph recorded, 110 mph trigger, default payout, $100,000 deductible ⇒ Wind above trigger: 55.00 mph • Gross parametric payout: $82,500.00 USD • Deductible/retention applied: $100,000.00 USD • Net payout released: $0.00 USD

FAQ

What if my payout schedule uses tiers instead of per-mph increments?

Convert each tier to an equivalent per-mph rate over its range or run the calculator multiple times using each tier's effective payout.

Can I model storm surge triggers?

Yes. Replace the wind speed inputs with surge heights and adjust the per-unit payout to align with your surge endorsement.

How fast are parametric payouts usually delivered?

Insurers often fund within days because loss adjustment is minimal. Use the net payout to size immediate liquidity ahead of reconstruction.

Additional Information

  • Parametric contracts typically rely on National Hurricane Center best-track data or third-party weather stations.
  • Many policies tier payouts by geography—use the per-mph field to match your schedule of values.
  • Deductibles for parametric covers may be structured as retentions or co-participation; enter the dollar equivalent.

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