Market Dynamics of Parametric Insurance: A Case Study of Leading Companies in the Insurance Industry

Despite the increasing popularity of parametric insurance as a risk management tool for climate and disaster-related events, the analysis on this type of insurance is still lagging. Unlike traditional insurance, parametric insurance delivers high-speed payouts based on predefined triggers, offering critical financial resilience in vulnerable sectors. The literature often focuses on general applications rather than delving into the mechanisms driving its adoption and integration in highly risky industries. Furthermore, the technological and strategic advancements—like quick, data-triggered payouts—that set parametric insurance apart from traditional models are rarely thoroughly assessed. This thesis explores key market dynamics and assesses case studies to identify how technological development can optimize parametric offerings. In addition to that, this analysis also takes into account the ethical and regulatory issues that impact industry growth, placing the results in a larger context.