The Latin America, Middle East and Africa Parametric Insurance Market would witness market growth of 16.3% CAGR during the forecast period (2022-2028).
Monitor the relevant parameters to identify when the threshold has been reached or exceeded. The calculations for the variable are based on risk modeling that uses historical data and observable information from the real world. To avoid any potential conflicts of interest and to maintain transparency, a third party chooses the event's intensity. The pre-determined indemnity is automatically given to the policyholder if the threshold is met.
Given the ongoing effects that climate change is exerting on the earth, parametric insurance will probably keep gaining in popularity. The pandemic has also increased businesses' awareness of how external factors might significantly affect their ability to survive. The majority of firms have learned that numerous conventional insurance policies flat-out do not cover losses caused by pandemics. As businesses learned that their insurers would not pay for pandemic claims, claiming the virus was not responsible for any physical damage, lawsuits did indeed make news.
In the past 20 years, Egypt has seen 23 major disasters, including floods, earthquakes, and landslides, costing about US$1.3 billion in losses. The two countries most at risk from seismic dangers are Iran and Algeria. In Iran, earthquakes are to blame for 95% of all fatalities during disasters. 90% of Algeria's population and infrastructure are situated in seismically vulnerable regions. Morocco and the Republic of Yemen both frequently experience earthquakes, landslides, and floods. The variability and uncertainty of disasters have led the governments to push for more financial help for their citizens. This is further aided by the financial support of parametric insurance. Therefore, the region is bound to bolster the growth of the parametric insurance market.
The Brazil market dominated the LAMEA Parametric Insurance Market by Country in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $442 million by 2028. The Argentina market would showcase a CAGR of 16.9% during (2022 - 2028). Additionally, The UAE market is experiencing a CAGR of 16% 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 Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA.
Free Valuable Insights: The Global Parametric Insurance Market is Predict 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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