2026-09-17 · Source: Carrier Management
Summary in 3 Points • Research & Markets forecasts the parametric insurance market to grow from $21.09bn in 2025 to $23.85bn in 2026 • The parametric insurance market is predicted to reach $63.8bn by 2035, with a CAGR of 13.1% • Double-digit annual growth rates are expected across various market reports for parametric insurance --- A series of market reports and industry developments indicate that **parametric insurance** is becoming mainstream. Research & Markets' report estimates the global parametric insurance market was valued at **$21.09 billion** in 2025 and is projected to grow to **$23.85 billion** in 2026, reflecting a compound annual growth rate (CAGR) of **13.1%**. Other reports also predict double-digit growth, with the market expected to reach approximately **$63.8 billion** by 2035. These figures highlight the increasing adoption and potential of parametric insurance solutions. For the **London Insurance Market**, the growth of parametric insurance presents opportunities and challenges, particularly in the **specialty lines** and **reinsurance** sectors where London holds a strong position. The subscription market at **Lloyd's** could see increased interest in parametric solutions, especially for **catastrophe** and **weather-related** risks. The projected growth rates suggest a shift in how risks are transferred and priced, potentially influencing underwriting strategies and product offerings in London. **Underwriters** and **brokers** in the London Market should consider integrating parametric solutions into their portfolios to capitalise on this growth trend. Understanding the nuances of parametric triggers and payout structures will be crucial for effectively managing risks and meeting client demands. Additionally, **risk managers** should evaluate how parametric products can complement traditional insurance policies, offering more tailored and responsive coverage options to their clients.