While traditional insurance can take months to pay, with so-called “parametric” insurance there is no need to prove losses. Insurance analysts at Allied Market Research estimate that the market, valued at US$11.7 billion in 2021, could reach US$29.3 billion by 2031. At annual climate talks in Egypt last year, nonprofits urged richer nations to help finance parametric insurance as a way of compensating victims of worsening weather extremes. LIMITSWhile parametric insurance has been around since the 1990s, recent advances in satellite technologies have opened up areas that were previously difficult to assess for damage, such as distant islands or mountain communities. At the moment, insurance schemes in the developing world are largely subsidized by nonprofit groups, national governments or wealthy countries.
