Key Challenges
High frequency of severe hail events in major horticultural zones
Extreme vulnerability of glasshouse infrastructure to large hailstones
Escalating repair costs for specialised glass panels and structural components
Operational disruption due to plant exposure and production delays
Revenue volatility driven by crop loss and business interruption
Need for immediate liquidity to ensure rapid repair and continuity
Key Benefits of the Parametric Structure
Transparent Terms
Policies are built on measurable triggers—like rainfall or temperature—so clients and their brokers know exactly when payouts occur. No fine print, no ambiguity.
Fast, Predictable Payouts
Once a triggering event occurs, payment is issued quickly and automatically—no need for on-site assessments or lengthy claims processes.
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.
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.
case study example
Sensor-Based Parametric Hail Cover
Following a severe hailstorm, an Australian plant nursery suffered significant damage to its glasshouses, exposing plants and disrupting production.
Problem
Although the business held traditional insurance, several limitations became clear:
- Significant deductibles
- Lengthy claims processes
- On-site inspections and loss adjustment
- Dependence on repair quotations
- Uncertainty around final claim outcomes
At a critical time, recovery depended on post-event assessments rather than objective event data. The experience highlighted the limitations of traditional indemnity coverage when rapid liquidity is required.
The nursery sought a more predictable and transparent alternative.
Solution
Descartes structured a dedicated parametric hail policy, carving out hail exposure from the traditional programme.
How It Works
- On-site hail sensors measure every hailstone impact
- Real-time calculation of hailstone size
- Objective verification of event intensity
- Pre-agreed payout thresholds
If hailstones exceeding 5 cm are recorded, the nursery receives a full payout within days.
This eliminates reliance on traditional loss adjustment processes and ensures immediate financial support for:
- Glasshouse repairs
- Business interruption losses
- Operational continuity
Result
The payout is directly linked to the diameter of the largest hailstone recorded on-site.
Contact Us
Whether you're quoting a complex risk, looking to break into new markets, or just curious about parametric insurance, our team is here to help you win. Reach out and we will get back to you within 48 hours.
