Articles | Volume 21, issue 1
Research article
14 Jan 2021
Research article |  | 14 Jan 2021

Design of parametric risk transfer solutions for volcanic eruptions: an application to Japanese volcanoes

Delioma Oramas-Dorta, Giulio Tirabassi, Guillermo Franco, and Christina Magill

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Cited articles

Artemis: Sompo Japan to launch parametric volcanic risk insurance, available at: (last access: 12 March 2019), 2016. 
Blong, R., Tillyard, C., and Attard, G.: Insurance and a Volcanic Crisis – A Tale of One (Big) Eruption, Two Insurers, and Innumerable Insureds, in: Observing the Volcano World. Advances in Volcanology (An Official Book Series of the International Association of Volcanology and Chemistry of the Earth's Interior – IAVCEI, Barcelona, Spain), edited by: Fearnley, C. J., Bird, D. K., Haynes, K., McGuire, W. J., and Jolly, G., Springer, Cham, Switzerland, 585–599,, 2017b. 
Blong, R. J., Grasso, P., Jenkins, S. F., Magill, C. R., Wilson, T. M., McMullan, K. and Kandlbauer, J.: Estimating building vulnerability to volcanic ash fall for insurance and other purposes, J, Appl, Volcanol,, 6, 1–13,, 2017a. 
Bonadonna, C., Costa, A., Folch, A., and Koyaguchi, T.: Tephra dispersal and sedimentation, in: Encyclopedia of volcanoes, 2nd Edn., edited by: Sigurdsson, H., Houghton, B., McNutt, S., Rymer, H., and Stix, J., Elsevier, 587–597,, 2015. 
Brown, S. K., Loughlin, S.C., Sparks, R. S. J., Vye-Brown, C., Barclay, J., Calder, E., Cottrell, E., Jolly, G., Komorowski, J.-C., Mandeville, C., Newhall, C. G., Palma, J. L., Potter, S., and Valentine, G.: Global volcanic hazard and risk, in: Global Volcanic Hazards and Risk, edited by: Loughlin, S. C., Sparks, R. S. J., Brown, S. K., Jenkins, S., and Vye-Brown, C., Cambridge University Press, Cambridge, UK, 81–172,, 2015. 
Short summary
Large volcanic eruptions are rare events; however, they may cause significant economic losses. This work explores a specific type of insurance (parametric insurance) applied to such events. Unlike traditional insurance where payouts occur after often lengthy loss assessments, this type of insurance makes automatic and prompt payments on the basis of the eruption attaining threshold values for objective and easily measurable characteristics (height and direction of the eruption column).
Final-revised paper