Key Challenges for the Region
Frequent and Severe Flooding: Hurricanes and heavy storms are driving increasingly intense and widespread flood events across North Carolina.
Disrupted Public Services: Flooding forces delays in recovery and response operations, as facilities require cleanup and repairs before essential services can be restored.
Community and Economic Strain: Local businesses, schools, and public spaces often experience closures or reduced activity, creating ripple effects that lead to economic slowdowns and hinder community recovery.
Key benefits of parametric insurance
Transparent Terms
Policies are built on measurable triggers so clients & their brokers know exactly when payouts occur. No fine print, no ambiguity.
Customized Coverage
We work closely with brokers to build each policy around the client’s specific risk and budget profile, providing protection where traditional insurance often cannot.
Fast, Predictable Payouts
Once a triggering event occurs, payment is issued quickly and automatically—no need for on-site assessments or lengthy claims processes.
Flexible Use of Funds
Payouts are based on the severity of natural events occurring —not solely on proven losses—giving clients immediate access to funds and empowering them to cover any type of financial loss –not just for physical damage.
Flooding poses significant challenges for municipalities in flood-prone areas of the U.S. Beyond the physical damage to infrastructure, communities also experience substantial intangible losses.
Descartes’ Parametric Flood Insurance: A Quick and Cost-Effective Recovery
Descartes’ Flood-at-Location parametric solution uses real-time, on-site sensors to measure flood depth with accuracy. This enables rapid, pre-agreed payouts that help municipalities recover quickly—not just from physical damage, but from delays and economic slowdown.
case study example
Parametric Flood-at-Location Solution for Asheville, North Carolina
The City of Asheville, North Carolina, experienced severe flooding when the French Broad River overflowed its banks during Hurricane Helene.
Problem
While traditional insurance covered some property damage, it did not fully account for the broader financial impacts. The city faced service disruptions because of debris removal efforts and infrastructure restoration, increased emergency response costs, and delayed recovery timelines—all contributing to significant non-damage-related financial strain. In response, municipal leaders began exploring alternative risk management solutions to help safeguard against future disruptions of this nature.
Solution
Descartes’ Flood-at-Location product offers a cost-effective solution for flood risk, using precise, no-contact sensors installed on-site to measure flood depth in real time. With the ability to install multiple sensors across the municipality, we’re able to capture widespread impacts, ensuring a quick recovery from both physical damage and indirect financial losses.
Result
If a similar event were to occur, with the flood depth at 3.9 feet and the location limit set to $10 million, the city would receive a payout of $6 million.
Interested in a solution?
