The Parametric Insurance Market is on the rise, valued at USD 15.99 billion in 2024 and expected to reach USD 34.62 billion by 2032, with a growth rate of 10.1% over the forecast period. This market offers quick, data-based solutions as an alternative to traditional coverage, triggering payments based on predetermined data such as rainfall, temperature, or wind.

The U.S. leads the global market for parametric insurance due to its developed tech market, frequent climate-driven disasters, strong insurance culture, and competitive insurer-tech collaborations. The demand for fast, transparent claims payments further cements the U.S.’s dominant role in this space.

Index-Based Insurance is the largest segment, accounting for 35% of revenue share in 2024. Weather-Based Insurance is the fastest-growing segment at a CAGR of 12.3%, driven by weather volatility. Cloud-Based deployment holds 46% market share, while the agriculture sector leads with 32% due to the need for timely assistance against natural disasters.

Large enterprises dominate the use of parametric insurance, capturing 68% of the market, while SMEs are rapidly expanding at a CAGR of 24.7%. North America leads the market at 38%, with Asia Pacific expected to experience the fastest growth at a CAGR of 14.8%. Europe and Latin America are also steadily growing, with innovative solutions being developed in each region.

Recent developments in the parametric insurance space include AIG’s introduction of new products to respond to emerging climate risks, emphasizing the role of parametrics in providing fast financial relief post-disasters and supporting long-term resilience in affected communities. The market report provides detailed insights into the industry’s scope, key players, and future trends.

Read more at GlobeNewswire: Parametric Insurance Market Size to Surpass USD 34.62