Parametric insurance is said to gain traction as climate risks grow Jun. 29, 2025 3:07 PM ET American International Group, Inc. (AIG) Stock By: Rob Williams , SA News Editor 9 Comments Play ( 2min ) ...

However, effectively incorporating parametric insurance into a business's risk management strategy requires understanding its nuances, potential hurdles and industry-specific applications.

Parametric insurance, which lets businesses tie their policies directly to weather conditions such as wind speed and flood depth, has garnered interest amid tough conditions for insurance buyers. By .

This type of policy, called parametric insurance, works like a bet. It has a defined payout, which limits the liability of the insurer. And it comes from a new breed of insurance company, ...

The global parametric insurance market was valued at $16.2b in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 12.6% from 2025 to 2034, ...

Though not a new concept, parametric insurance has taken off with advances in satellite weather monitoring and computerized data processing. That has made it easier to deploy widely and ...

Parametric insurance has gained traction in recent years as a primary risk-transfer product; for example, Vermont, the leading U.S. captive insurance jurisdiction, in 2022 began permitting its ...

If you currently carry a $10,000 deductible, parametric insurance might let you get a $25,000 deductible, but any deductible would be paid instantly by your parametric policy.

A growing type of insurance, called parametric insurance, is helping farmers and others in developing countries respond to extreme weather events. MINDANAO, Philippines — Joemar Flores, a ...

On Dec. 13, 2024, New York Governor Kathy Hochul signed a bill integrating parametric insurance into the state’s existing legal framework for insurance products under the New York Insurance Law ...