The insurance industry plays a vital role in safeguarding society from various risks. Higher insurance coverage is linked to greater societal resilience against hazards. However, traditional insurance falls short in covering all types of risks, which is reflected by a growing protection gap. In our white paper we show how the new insurance concept of parametric insurance can help mitigate this negative effect on society. With parametric insurance solutions insurers can offer coverage for risks that could not have been insured previously or, if so, then at very high premiums, such as weather insurance, non-damage business interruption as well as hurricane insurance for low-income families. Thus, parametric products are in some cases the only insurance products affordable for the less wealthy. In addition, the digital nature of these products greatly improves the customer experience: claims can be paid out almost instantaneously rendering a loss adjustment process obsolete. We further discuss the pros and cons of parametric insurance in this paper and juxtapose it with traditional indemnity insurance. The conclusions highlight that this new type of coverage is here to stay and will enrich the traditional insurance landscape.