The last painful forest fires series in California has often diminished for traditional commercial insurance.
Companies are usually required to document their losses and submit a claim and wait for months or even years to pay. Insurance companies must accurately evaluate damage, verify that the claim has not been excluded from politics, and specify the amount that must be paid. Medium -sized companies and owners of multiple families can bankruptcy pending payment.
Some companies choose another option that promises to help them faster: border policies. Allied Market Research expects that the global insurance market, which reached a total of $ 18 billion in 2023, will grow to more than $ 34 billion by 2033.
Paramester insurance has been present for years, covering disasters such as tropical hurricanes, other weather and earthquake events. The main advantage of these policies is to pay faster compensation, because the insurance company agrees to pay a pre -set amount when a specific risk reaches a pre -determined size. Payment is run by parameters that can be measured quickly, such as rain, hurricane or wind speed.
The insurance company knows how much the insurance subscriber will pay, and the subscriber understands the amount of coverage he will get. They both realize the conditions needed to light green.
Expensive Parametric Policies: It may require a $ 1 million insurance policy of $ 50,000 of distinctive annual payments. But the increase in the frequency of natural disasters
It stresses the need for faster procedures. Ten years ago, forest fires were considered secondary risks and are not considered existential threats. The Fort McMurray Fire of 2016 in Alberta, Canada, changed this position in the insurance industry: the fire caused 3 billion dollars of losses, which was considered at that time enormous.
Since then, the costs of forest fires have multiplied in the United States, with a total of $ 67 billion of insured losses in 2024, not the 2025 fire account, according to Munich Rey.
