The North America Parametric Insurance Market would witness market growth of 8.4% CAGR during the forecast period (2022-2028).
Index-based insurance, also known as parametric insurance, is becoming more popular, particularly for weather-related calamities. Since weather stations and satellites properly record weather-related factors, hazard modeling continues to advance. Improved data and analytics make the parametric cover a more effective, accessible, and competitive market choice. In addition to hazards associated with the environment, parametric insurance is also employed for a number of other issues. More specialized parametric insurance against additional specific risks like cybercrime, data breach, and even reputational damage is being built due to advancements in big data analytics, computing capacity, and modeling procedures.
Catastrophe bonds that cover significant risks like hurricanes and earthquakes have had the most impact so far on parametric insurance, but the idea is starting to appear more frequently in commercial and household insurance. Because the coverage only kicks in when a predetermined "metric," such as speed of wind or ground shaking, reaches or surpasses a specified intensity, it is called parametric. Various other metrics, such as barometric pressure, precipitation, average snowfall, storm surge as determined by tidal gauges, and even hotel room occupancy rates are used by insurers to determine whether to issue this type of coverage.
Every year, there are about 4,000 earthquakes in Canada. These are typically located near coastlines. Every year, landslides occur frequently in the nation's mountainous regions, such as the Canadian Rockies. The southern parts of Ontario, Alberta, Quebec, and New Brunswick are affected by tornadoes. The average number of tornadoes in the nation every year is 60. As seen by various meteorological statistics, the region will continue to witness some of the most adverse weather conditions. This has made the region a host to various parametric insurances and is a competitive and expanding parametric insurance market.
The US market dominated the North America Parametric Insurance Market by Country in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $5,759.2 million by 2028. The Canada market is experiencing a CAGR of 10.5% during (2022 - 2028). Additionally, The Mexico market is showcasing a CAGR of 10.2% during (2022 - 2028).
Based on Type, the market is segmented into Natural Catastrophes Insurance, Specialty Insurance, and Others. Based on Vertical, the market is segmented into Agriculture, Construction, Aerospace & Defense, Mining, Manufacturing, Energy & Utilities, and Others. Based on countries, the market is segmented into U.S., Mexico, Canada, and Rest of North America.
Free Valuable Insights: The Global Parametric Insurance Market is Estimated to reach $21.4 Billion by 2028, at a CAGR of 9.6%
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Allianz Group, AXA SA, Zurich Insurance Group Ltd., Berkshire Hathaway, Inc., Chubb Limited, Munich Re Group, FloodFlash Limited, Neptune Flood Incorporated, Global Parametrics Limited and Swiss Re.
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