Researchers will investigate whether parametric insurance can better protect sporting events against cancellations caused by extreme weather and other major risks.

Curtin University is seeking a PhD candidate to develop actuarial and risk modelling frameworks for event cancellation cover, with a focus on parametric products that trigger payouts when measures such as rainfall, temperature or wind speed exceed agreed thresholds.

The university says traditional insurance policies often provide limited protection for the broader financial consequences of event cancellation, particularly as insurers tighten terms and pricing for escalating weather risks.

The study will examine how climate data, catastrophe modelling, probabilistic forecasting and financial risk analytics can be integrated to improve the pricing and design of products.

The project notes recent examples of sporting events’ growing exposure, including the cancellation of the 2023 Emilia-Romagna Grand Prix because of flooding and concerns over the long-term viability of Winter Olympics venues as snow conditions deteriorate.

The uni says the temporary suspension of the Indian Premier League last year reportedly led to losses exceeding $15 million per match.

The project has attracted interest from the WA Cricket Association, Cricket Australia, specialist insurance broker Miller and the Actuaries Institute.