Key Challenges for the Region:
Strain on Infrastructure: Floods damage roads, utilities, and public buildings, disrupting services and requiring costly repairs.
Recurring Storm Impact: Hurricanes like Helene, Milton, and Ian increase financial pressure on public entities still recovering from past disasters.
Tourism Disruption: Flooding harms Florida’s tourism by damaging attractions and infrastructure, impacting local economies.
Key benefits of parametric insurance
Added Transparency
With pre-agreed parameters and payout structures eliminating ambiguity
Bespoke Policies
Custom covers for one or multiple locations adapted to the client’s existing coverage (e.g., traditional insurance, captive)
Swift Payouts
In a matter of days or weeks after a loss event, no longer requiring on-site loss assessment
Financial Freedom
Covering any type of direct or indirect financial losses resulting from the event
Floods are among the costliest natural disasters for U.S. public entities, causing service disruptions, infrastructure damage, and tourism losses. With traditional insurance often falling short, alternative risk solutions are essential.
Descartes’ Parametric Flood Insurance: Sensor-Based Coverage for Those at Risk
Descartes’ Flood-at-Location parametric solution offers accurate and efficient loss evaluation thanks to the deployment of highly accurate on-site sensors.
case study example
Parametric Flood-at-Location Solution for Florida
After Hurricane Ian struck in 2022, the Fort Myers area experienced severe flooding due to a storm surge.
Problem
Among the affected facilities, the local public library sustained major water damage to the building, its contents, and even personal belongings of staff members. In the aftermath, they discovered that their traditional insurance policy did not fully cover the extent of the losses. This gap in coverage delayed recovery efforts and highlighted the need for more comprehensive and responsive risk solutions.
Solution
To avoid this in the future, the entity could opt for a parametric policy. With our Flood-at-Location cover, the client could receive a swift payout based on the flood depth detected on-site, thanks to the installation of precise no-contact sensors.
Result
If a similar event were to occur and the water depth reached 5ft, they would receive $5 million. This would allow them to quickly cover costs for repairs and stay resilient amid non-damage business interruption.
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