Smart Contracts in Parametric Insurance Market Report 2026

The smart contracts in parametric insurance market size has grown rapidly in recent years. It will grow from $11.32 billion in 2025 to $12.84 billion in 2026 at a compound annual growth rate (CAGR) of 13.4%. The growth in the historic period can be attributed to increasing exposure to climate-related risks, limitations of traditional claims-based insurance, early adoption of blockchain in insurance, demand for faster claim settlements, availability of reliable third-party data sources.

The smart contracts in parametric insurance market size is expected to see rapid growth in the next few years. It will grow to $20.96 billion in 2030 at a compound annual growth rate (CAGR) of 13%. The growth in the forecast period can be attributed to increasing adoption of parametric insurance products, rising investments in insurtech platforms, expansion of climate risk coverage solutions, growing government participation in parametric schemes, advancements in oracle and data validation technologies. Major trends in the forecast period include increasing adoption of blockchain-based smart contracts, rising use of parametric triggers for payouts, growing integration of iot and weather data feeds, expansion of automated claims settlement models, enhanced focus on transparency and speed.

The rising adoption of cloud-based systems is expected to propel the growth of the smart contracts in parametric insurance market going forward. Cloud-based systems are online platforms that provide on-demand computing power, data storage, and software services, eliminating the need for on-site infrastructure. Their adoption is increasing due to scalability and flexibility, allowing businesses to adjust resources quickly without heavy upfront costs. In parametric insurance, cloud-based systems enhance smart contracts by enabling real-time data processing, secure automation, and efficient policy management. This streamlines claims execution, reduces administrative burden, and shortens settlement times while improving transparency and accuracy. For instance, in December 2023, according to Eurostat, a Luxembourg-based statistical office of the European Union, approximately 45.2% of EU enterprises purchased cloud computing services. Therefore, the rising adoption of cloud-based systems is driving the growth of the smart contracts in parametric insurance market.

Key companies in the smart contracts for parametric insurance market are focusing on strategic partnerships to improve data accuracy and deliver faster, more transparent claim settlements. Strategic partnerships allow organizations to combine strengths and resources to achieve mutual objectives. These collaborations also enable the seamless integration of technologies such as blockchain and satellite data, enhancing solution effectiveness and expanding market reach. For example, in June 2023, Arbol Inc., a U.S.-based climate risk solutions company, partnered with The Institutes RiskStream Collaborative, a U.S.-based nonprofit blockchain and emerging technologies consortium, to launch dRe, a blockchain-powered parametric reinsurance platform. This platform enables automatic reinsurance payouts based on climate or weather triggers, improving efficiency and building trust. It supports rule-based smart contracts for real-time execution and offers a decentralized structure to enhance security and data integrity.

In May 2025, IBISA Network S.A., a Luxembourg-based climate insurtech company, teamed up with Ensuro and One Acre Fund to provide farmers with smart, fast, and secure climate risk protection. This partnership aims to offer an affordable, blockchain-based parametric insurance solution that uses satellite data and smart contracts to automate claims processing, reduce administrative costs, and ensure timely payouts to smallholder farmers affected by adverse weather. Ensuro is a U.S.-based provider of blockchain-based parametric insurance, while One Acre Fund is a Kenya-based social enterprise.

Major companies operating in the smart contracts in parametric insurance market are AXA Group, Aon plc, Ensuro Technologies SL, Descartes Underwriting SAS, Chainlink Foundation, Arbol Inc., Blink Parametric Limited, Etherisc GmbH, Demex Group Inc., Raincoat Inc., FloodFlash Ltd., Nexus Mutual Ltd., Tidal Finance Ltd., Tractable Ltd., Otonomi Ltd., IBISA Network S.A., Parametrix Insurance Technologies, Climate X Insurance Solutions, Weathered Risk Solutions, Skycover Insurance, Riskblock Alliance, Verifly Insurance, Quantsurance.

North America was the largest region in the smart contracts in parametric insurance market in 2025. The regions covered in the smart contracts in parametric insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the smart contracts in parametric insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The smart contracts in parametric insurance market consists of revenues earned by entities by providing services such as automated claims processing, real-time data integration, risk assessment modeling, policy issuance and management, blockchain infrastructure development, and smart contract coding and deployment. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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