The recent report published by InsTech “Parametric Insurance 2021 outlook and the companies to watch” leveraged the parametric scale. Several new applications came out of the shell during this.
Ahead, another report published, “Parametric Insurance in 2022 : the 150+ companies to watch “. On referring these reports opinions were exchanged by four experts regarding perspective of role of parametric insurance in the market. Looking the landscape of parametric insurance amidst the covid span a lot more interest was grossed, and this increased business sensitivity towards uncertainty and potential threats to operations. They are opting for levelling up affordability in insurance protection. These spaces of uncertainty in the traditional insurance market is filled by the providers of SaaS and Insurtech. Majority of this could be seen in Global Parametric , Floodflash, Descartes and Kita . Increase in back office solutions and products for parametric solutions was also noticed.
Looking these parameters evolving in AXA-XL, diverse sectors that bolds the line of solutions required to mitigate the change of climate impacts, most of them can be seen in tourism and shipping- which includes loan repayment failures due to weather uncertainties, project stoppages in construction, heatwaves, holiday resorts facing issues of destruction in typhoons and barge operators that fail to operate when rivers and canals become out of control by navigation. This puts a handful of impact on revenues and earnings and adversely affect the sectors that are exposed to weather risk such as agriculture and alternative energy sectors. These prevailing risks can be shielded by greater collaboration and partnerships between insurers, private companies and local governments.
