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Parametric Insurance Market Trends

Report ID: GMI10544
Published Date: Jul 2024
Report Format: PDF

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Parametric Insurance Market Trends

Weather-related risks, including hurricanes, earthquakes, and floods, were the traditional focus of parametric insurance. Expanding parametric solutions to cover a wider range of risks, including supply chain disruptions, cyber risks, pandemics, and even non-damage business interruption events, is a developing trend in the industry.

Customized parametric solutions based on industry, geography, and risk profile customization are becoming increasingly prevalent among insurers. By addressing specific risk exposures, this personalization makes parametric insurance more appealing to a wider range of consumer groups. Combining parametric insurance with alternative risk transfer mechanisms, such as captive insurance structures/classic indemnity plans, demonstrates the innovations among insurers in product design. These hybrid solutions offer enhanced flexibility to accommodate a wide range of consumer needs along with complete coverage.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of parametric insurance reached USD 14.8 billion in 2023 and is set to register over 11.5% CAGR between 2024 and 2032, led by the growing adoption of latest technologies.

The corporate parametric insurance industry held over 45% share in 2023, as it promotes corporate resilience by enabling quicker recovery and continued operations.

North America market held 35% share in 2023, driven by the increasing frequency of digital threats and strict regulatory requirements.

Berkshire Hathaway, Chubb, Lloyd's of London, Munich Re, Nephila Capital, Swiss Re, and Zurich Insurance Group among others.