As natural disasters such as hurricanes and wildfires increase in frequency and severity, and new risks emerge, including cyber threats and supply chain disruptions, the need for complementary insurance solutions continues to grow. According to Global Market Insights, the parametric insurance market is forecast to reach $39.3 billion by 2032, highlighting the need for alternative solutions to fill gaps in traditional commercial property insurance.
“Parametric insurance solutions offer significant benefits and help meet the needs of businesses seeking more efficient and costeffective approaches to risk management,” added Peter Rapciewicz, Executive Vice President and pakistan phone number list Business Leader, Alternative Risk Solutions, and Head of U. Parametric Insurance Solutions. “Lockton’s investment in the global parametric insurance business underscores our commitment to providing resilient solutions that not only provide financial protection but also help businesses continue to operate seamlessly in the face of challenges.”
Parametric insurance policies pay out based on specific event triggers, such as the intensity of a storm, rainfall or earthquake in a defined location, which may or may not result in actual physical damage and fast payouts, often processed within days of an event, allowing businesses to quickly resume operations with minimal disruption.