Key Challenges for the Region
Frequent hailstorms across Australia, particularly around Sydney, cause severe losses to outdoor assets, from vehicle fleets to dealership infrastructure.
Business interruption insurance (BI insurance) coverage is often insufficient, as traditional policies limit hail sub-covers and delay compensation.
Manufacturing insurance and commercial general liability insurance frequently exclude weather-related damages, leaving businesses financially vulnerable after each storm.
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.
Australia’s extreme weather insurance landscape is under increasing pressure, with hail events among the costliest natural catastrophe (NatCat) insurance perils in the region. Caravans, motorhomes, and lightweight vehicles are highly exposed due to their outdoor display settings, and traditional insurance often fails to provide adequate or timely coverage.
Descartes’ Parametric Hail Insurance: Sensor-Based Precision for Fast, Transparent Recovery
Descartes Underwriting leverages parametric insurance technology to cover hailstorm risks with unmatched transparency. Using hail sensors that capture the diameter and kinetic energy of each hailstone, payouts are triggered automatically when thresholds are met, ensuring swift compensation, reduced uncertainty, and business continuity without lengthy claims processes.
case study example
Parametric Hail Solution for the Automotive Retail Industry in Sydney, Australia
In Sydney, Australia, a sudden hailstorm caused significant damage to a caravan dealership’s display stock and outdoor facilities.
Problem
A caravan dealership located in the Sydney area suffered heavy hail damage to its display stock and outdoor facilities. Despite having a standard all-risk insurance policy, the hail sub-limit provided only partial reimbursement, leaving significant losses uncovered. This also resulted in business interruption, affecting both sales and customer service.
Solution
At renewal, the dealership selected Descartes’ parametric hail insurance policy — a structured insurance solution using on-site hail sensors. Each impact was individually measured, providing transparent data to calculate payouts. The dealership achieved financial freedom by complementing its traditional insurance with a parametric cover, reducing overall premiums while ensuring immediate liquidity after an event.
Result
If the insured limit was set at A$1 million, and the largest hailstone measured over 5 cm, Descartes would deliver a 100% payout within days—no adjusters, no ambiguity. This parametric model allowed the dealership to recover quickly, maintain operations, and strengthen resilience against climate risk insurance events.
Interested in a solution?
