Examining Community Needs for Reciprocal Parametric Insurance

About the Study

As natural hazards are becoming more frequent, insurance companies are withdrawing from high-risk areas in the United States, leaving homeowners without adequate financial protection. While parametric insurance presents a potential solution by offering rapid payouts based on predefined hazard triggers, its adoption by communities and households remains limited due to multiple factors, including potential misalignment between what payouts are provided and community expectations. This research explores community financial resources and current systems in Sarasota, Florida to better understand how to solve the growing problem of expenses due to hurricanes and reduced funding and support. This research will potentially inform solutions such as a type of coverage called parametric reciprocal insurance: an emerging model that pays out based on storm conditions (like wind speed or rainfall) rather than waiting for damage assessments.

Are you a Sarasota resident?

Help shape the future of community-based hurricane insurance. As hurricane seasons grow more severe, traditional insurance models leave too many Floridians uncertain about their financial recovery. Our team is conducting a research study to better understand how Sarasota residents experience and perceive hurricane risk and insurance—and how we might co-design better, fairer, and more transparent solutions to this growing problem. Interested in participating? Fill out this form: https://bit.ly/4kcdWmH

We want to learn:

• How Sarasota residents currently understand their risk from hurricanes
• What barriers exist to using insurance to recover from disasters
• How a local, community-focused insurance system could work better
• What design features people want in a solution they can trust

This study is being led by researchers from the University of Michigan and is supported by local partners.

Why This Matters

This research is key to developing solutions to the growing expense of disasters in high-risk areas such as Sarasota, Florida. Participation can help develop novel financial or insurance tools to better protect areas that experience severe weather.

Who Can Participate?

We’re looking to hear from:

• Homeowners and renters in Sarasota County
• Residents with or without current insurance
• Community leaders, local organizers, and neighborhood groups
• Anyone with lived experience of hurricanes or flood damage in Sarasota

We want to hear from you, whether you’ve used insurance before or have never had coverage.

Want to participate or learn more?

• Fill out our interest form: [Interest Form]
• Email us: magmiles@umich.edu

We’re also connecting with local groups to host workshops and info sessions. If you represent a community organization, we’d love to collaborate. Please contact us using the information above.