Parametric insurance is transforming risk management by using measurable triggers, such as weather data or seismic activity, to provide rapid payouts.

It addresses protection gaps where traditional insurance may be limited or unavailable, particularly in emerging markets or catastrophe-prone regions. By offering certainty and speed of response, parametric solutions are increasingly adopted across agriculture, renewable energy, logistics, and infrastructure.

As climate change drives more frequent natural disasters, demand for innovative risk transfer tools continues to rise. Brokers play a vital role in shaping these bespoke solutions, making coverage more accessible and affordable for businesses worldwide.