Interest in parametric insurance reflects an increasingly clear reality for the insurance industry: climate risks are growing in frequency, intensity, and complexity, making it necessary to develop solutions capable of responding quickly and efficiently.

In this context, parametric insurance offers a clear advantage. By triggering payouts when an objective indicator—such as accumulated rainfall, wind speed, or earthquake magnitude—exceeds a defined threshold, it enables faster claims payments and reduces response times following an extreme event.

For Alessio Beninati, Strategic Innovation Manager at Mapfre, this agility makes a significant difference in certain scenarios: “Parametric insurance stands out for its ability to provide fast, automated payouts, particularly in the face of climate disasters and complex risks, where speed of payment is critical.”

This model is a strong complement to traditional insurance, helping to overcome some of its operational limitations. Because it does not require on-site loss assessments to trigger payouts, parametric coverage can be applied in rural areas or in regions where damage assessment is difficult.

This feature is particularly relevant in Latin America, a region with high exposure to natural hazards and relatively low insurance penetration—just 3%, as Mapfre highlighted at the latest ITC Vegas edition.

According to Daniel Meilán, head of Non-Life Business Development at Mapfre, parametric insurance can help reduce this gap, as “it is becoming established as a particularly valuable solution in regions such as Latin America, where exposure to natural hazards is high.”

Trends shaping 2026

According to Capgemini’s Insurance Top Trends 2026 report, the insurance industry is strengthening its analytical capabilities through high-resolution climate data, predictive analytics, and new risk modeling tools.  These technologies enable better anticipation of the impact of natural events and support the development of more precise parametric insurance solutions.

For Jaime de Piniés, CEO of Blue Marble, this technological progress explains much of the growth of this type of insurance. “The rise of parametric insurance is driven by the combination of advanced technology and growing market demand,” he says.

Access to new data sources is also transforming how these products are designed. “Today we have access to alternative datasets, such as satellite data, that are far more granular. And, thanks to AI, we can process that information with a level of efficiency that was previously unimaginable,” de Piniés explains.

This increased precision makes it possible to design coverage tailored to specific risks—from droughts to extreme rainfall—and opens the door to hybrid models that combine traditional insurance with parametric layers.

Mapfre’s commitment to parametric insurance

In this context, Mapfre is taking a further step in its commitment to parametric insurance through its investment in Blue Marble, a global consortium specializing in the development of parametric insurance and microinsurance.

The goal is to accelerate the development of these solutions and expand their application in markets where the protection gap remains high, particularly in Latin America.

The partnership brings together complementary capabilities. Blue Marble contributes expertise in the design of parametric solutions and impact insurance, while Mapfre provides its strong regional presence and deep understanding of local markets.

According to Jaime de Piniés, this collaboration has strong growth potential: “Mapfre brings an unparalleled distribution network and customer base, along with deep knowledge of local needs.”

From an innovation standpoint, being part of the consortium also provides access to specialized expertise. Alessio Beninati highlights that this collaboration gives Mapfre “valuable insights that support the development of key learnings in the parametric insurance sector.”

For Daniel Meilán, this initiative will help develop new capabilities in microinsurance and climate risk protection, while also “helping expand access to insurance for communities that have so far had more limited coverage options.”

In a context shaped by climate change and increasing risk complexity, parametric insurance is emerging as an increasingly relevant tool to complement traditional insurance and expand access to protection. For Mapfre, its development represents an opportunity to combine innovation, business growth, and social impact in the markets where it operates.