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Flood Insurance Market Trends

  • Report ID: GMI9498
  • Published Date: May 2024
  • Report Format: PDF

Flood Insurance Market Trends

The growth of parametric insurance in the flood insurance industry offers innovative solutions to address challenges. Parametric insurance utilizes predetermined triggers, such as rainfall levels or river water levels, to automatically initiate payouts, providing faster and more transparent compensation for flood-related losses and enhancing efficiency and customer satisfaction. For instance, in January 2024, Capella Space and Floodbase forged a partnership to elevate parametric flood insurance through the incorporation of high-resolution Synthetic Aperture Radar (SAR) satellite data into Floodbase's comprehensive solution. This collaborative effort targets the escalating difficulties of flood risk heightened by climate change.

By leveraging Capella's SAR imagery, Floodbase can enhance its parametric flood insurance products, providing superior solutions for a broad range of use cases and clients. The partnership enables Floodbase to capture flooding magnitude in detail, regardless of cloud cover, strengthening its ability to produce reliable flood maps under various conditions.

As climate change intensifies, insurers increasingly emphasize proactive risk mitigation strategies. This involves partnering with clients to implement flood-resistant building techniques, elevate properties, or enhance drainage systems. By incentivizing and supporting risk reduction measures, insurers aim to minimize the frequency and severity of flood-related losses, ultimately reducing their exposure and improving the long-term sustainability of the market.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of flood insurance was worth USD 11.8 billion in 2023 and is set to witness 14.5% CAGR from 2024 to 2032, due to the climate change-induced extreme weather events, increasing flood frequency, heightened awareness of risks.

The residential flood insurance coverage segment accounted for over USD 6 billion in revenue in 2023, owing the rising incidences of floods in the residential areas and growing demand for personal property insurance.

The direct sales segment in the flood insurance industry is projected to record over 13% CAGR between 2024 and 2032, as they provide consumers more convenience and accessibility.

North America market accounted for over 45% revenue share in 2023, owing to the surge in private sector participation alongside government-backed programs.

Flood Insurance Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 285
  • Countries covered: 24
  • Pages: 260
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