Reinsurance Revolution: Key Trends to Watch

The reinsurance industry is experiencing significant trends influenced by global economic challenges and climate change. Insurers face a rise in claims from natural disasters and changing risks, prompting reinsurers to tighten their underwriting criteria and increase premiums. This shift has resulted in a hard market emphasizing innovative solutions like parametric insurance and advancements in technology for risk assessment.

Momentum for Parametric Insurance On the rise

The market value for parametric insurance and the industry is seeing unprecedented growth. Due to climate change and new technology, the demand for parametric insurance is increasing. This allows reinsurers to estimate the chances of these events and make quicker payments to those affected by significant disasters. As a result, there is growing investment in parametric products and startups developing technology for this type of insurance. Simply put, parametric insurance pays people when conditions are met, like a strong earthquake or a fast hurricane.