(MENAFN- PR Newswire) DUBLIN, Jan. 30, 2023 /PRNewswire/ -- The 'global parametric insurance market size, share & industry trends analysis report by type, by vertical (agriculture, construction, aerospace & defense, mining, manufacturing, energy & utilities), by regional outlook and forecast, 2022 - 2028' report has been added to
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The Global Parametric Insurance Market size is expected to reach $21.4 billion by 2028, rising at a market growth of 9.6% CAGR during the forecast period.
Parametric insurance is a type of insurance solution, which covers the likelihood that a preset event will occur rather than compensating for actual losses. Secondly, the definition of parametric insurance is an agreement to pay an amount in the case of a triggering event; as such, it is not connected to any actual physical asset or component of the infrastructure.
If pre-defined event parameters measured by an objective variable or index linked to a specific exposure of an insured are met or exceeded, the insurance coverage is activated.
The purpose of parametric coverage is to speed up recovery rather than to replace traditional insurance. They can be created to cover both individual massive losses and frequency losses, such as the effects of reduced snowfall or economic interruptions brought on by hurricanes. To get the greatest outcomes, it is crucial to think about how standard indemnity plans might be combined with parametric alternatives.
In order to help businesses finance or manage risks in a non-traditional manner, reinsurance and insurance companies offer parametric covers, which are alternative risk solutions.
The solutions are based on specified triggers or payment systems and revolve around a quantifiable index; no actual physical harm needs to be done for them to work. The demand for such cutting-edge parametric insurance systems has been rising as climate-related meteorological risks become more complicated and unpredictable.
COVID-19 Impact Analysis
The COVID-19 pandemic had a positive effect on the market for parametric insurance since it raised awareness and led to a growth in adoption by companies with a wider range of risk exposure. The necessity for new parametric financial products for both conventional and novel risks has been made clear by the pandemic problem.
Even if their insurance policies included a business interruption clause, the majority of companies understood that it did not provide insurance protection against pandemics. The introduction of parametric insurance resulted from this. This further is expected to fuel the market growth.
Market Growth Factors
Budget-Friendly Policy Costs and Expansive Policies for Clients
Due to the lower prices, parametric insurance is growing in popularity. Customers are drawn to parametric insurance because of its affordable premiums since they want to protect their property from unanticipated financial losses or damage. Additionally, it is tailored to a customer's budget or bundled with indemnity insurance to close any gaps in coverage.
Actual post-event costs are substantial and infrequently expected or budgeted, particularly for governmental institutions tasked with rebuilding a region after a tragedy. The insured may have more financial freedom with parametric insurance.
Ensured Insurance Payments at A Faster Pace
Policies with parametric insurance allow for speedy payouts. For firms to recuperate from a disastrous catastrophe, this may be essential. The insured also understands that this payment is guaranteed because it is based on specific, predetermined conditions. One more implication is that the compensation specified in the insurance will happen even if the insured suffers no harm at all or very little damage.
Market Restraining Factors
Uncertainty of Events and Loss Determination for Basis Risk
The basis risk is higher with parametric insurance because it bases risk determination on pre-established parameters. In insurance, the idea of risk premium is essential. Basis risk is the situation when an insurance policy does not cover a loss occurrence. Additionally, parametric insurance payments are frequently outlined using indices. As a result, there is a chance that someone covered by it could sustain a loss yet not be compensated since some requirements weren't completed. It is plausible that the policyholder will not receive any compensation at all.
Key Topics Covered:
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
2.1 Introduction
2.1.1 Overview
2.1.1.1 Market Composition and Scenario
2.2 Key Factors Impacting the Market
2.2.1 Market Drivers
2.2.2 Market Restraints
Chapter 3. Competition Analysis - Global
3.1 Cardinal Matrix
3.2 Recent Industry Wide Strategic Developments
3.2.1 Partnerships, Collaborations and Agreements
3.2.2 Product Launches and Product Expansions
3.2.3 Acquisition and Mergers
3.3 Top Winning Strategies
3.3.1 Key Leading Strategies: Percentage Distribution (2018-2022)
3.3.2 Key Strategic Move: (Acquisitions and Mergers: 2019, Dec - 2022, Jul) Leading Players
3.3.3 Key Strategic Move: (Partnerships, Collaborations and Agreements: 2020, Dec - 2022, Jul) Leading Players
Chapter 4. Global Parametric Insurance Market by Type
4.1 Global Natural Catastrophes Insurance Market by Region
4.2 Global Specialty Insurance Market by Region
4.3 Global Others Market by Region
Chapter 5. Global Parametric Insurance Market by Vertical
5.1 Global Agriculture Market by Region
5.2 Global Construction Market by Region
5.3 Global Aerospace & Defense Market by Region
5.4 Global Mining Market by Region
5.5 Global Manufacturing Market by Region
5.6 Global Energy & Utilities Market by Region
5.7 Global Others Market by Region
Chapter 6. Global Parametric Insurance Market by Region
Chapter 7. Company Profiles
7.1 Allianz Group
7.1.1 Company Overview
7.1.2 Financial Analysis
7.1.3 Segmental Analysis
7.1.4 Recent strategies and developments:
7.1.4.1 Acquisition and Mergers:
7.1.5 SWOT Analysis
7.2 AXA SA
7.2.1 Company Overview
7.2.2 Financial Analysis
7.2.3 Segmental Analysis
7.2.4 Recent strategies and developments:
7.2.4.1 Partnerships, Collaborations, and Agreements:
7.2.4.2 Product Launches and Product Expansions:
7.2.5 SWOT Analysis
7.3 Zurich Insurance Group Ltd.
7.3.1 Company Overview
7.3.2 Financial Analysis
7.3.3 Segmental and Regional Analysis
7.3.4 Recent strategies and developments:
7.3.4.1 Product Launches and Product Expansions:
7.3.4.2 Acquisition and Mergers:
7.3.5 SWOT Analysis
7.4 Berkshire Hathaway, Inc.
7.4.1 Company Overview
7.4.2 Financial Analysis
7.4.3 Segmental and Regional Analysis
7.4.4 Recent strategies and developments:
7.4.4.1 Acquisition and Mergers:
7.5 Chubb Limited
7.5.1 Company Overview
7.5.2 Financial Analysis
7.5.3 Recent strategies and developments:
7.5.3.1 Product Launches and Product Expansions:
7.5.3.2 Acquisition and Mergers:
7.5.4 SWOT Analysis
7.6 Munich Re Group
7.6.1 Company Overview
7.6.2 Financial Analysis
7.6.3 Segmental Analysis
7.6.4 Recent strategies and developments:
7.6.4.1 Partnerships, Collaborations, and Agreements:
7.7 FloodFlash Limited
7.7.1 Company Overview
7.8 Neptune Flood Incorporated
7.8.1 Company Overview
7.8.2 Recent strategies and developments:
7.8.2.1 Partnerships, Collaborations, and Agreements:
7.8.2.2 Acquisition and Mergers:
7.9 Global Parametrics Limited
7.9.1 Company Overview
7.10. Swiss Re.
7.10.1 Company Overview
7.10.2 Financial Analysis
7.10.3 Segmental and Regional Analysis
7.10.4 Recent strategies and developments:
7.10.4.1 Partnerships, Collaborations, and Agreements:
7.10.4.2 Product Launches and Product Expansions:
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