Key Challenges for the Region
Sudden and extreme rainfall events causing severe damage to construction sites
Project delays leading to contractual penalties and indirect financial losses
Traditional insurance failing to cover indirect losses linked to excess precipitation
Key benefits of parametric insurance
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.
Excess rainfall events can cause rapid and widespread disruption. For construction companies in Texas, intense storms can halt operations, damage equipment, and significantly extend project timelines, creating uncovered financial exposure.
Descartes’ Parametric Excess Rainfall Insurance: Fast, Transparent Protection Against Weather Disruptions
Descartes’ parametric excess rainfall insurance provides immediate financial relief when predefined rainfall thresholds are exceeded. By relying on verified third-party rainfall data and pre-agreed payout structures, the solution eliminates loss assessment delays and ensures swift compensation for both direct and indirect losses.
case study example
Parametric Excess Rain Solution for Construction Projects in Texas
A construction company operating in Harlingen, Texas, faced growing exposure to extreme rainfall events.
Problem
In March 2025, a severe thunderstorm hit South Texas, bringing nearly six months’ worth of rain in less than two days. The construction site recorded 12 inches of rainfall, resulting in extensive property damage and operational delays. The company discovered that its traditional insurance did not cover indirect financial losses caused by excess rainfall, leading to project delays that exceeded contractual deadlines.
Solution
To secure better protection moving forward, the company turned to Descartes’ parametric solution for excess precipitation. This coverage ensured that both direct and indirect financial losses would be compensated based on predefined rainfall thresholds, without the need for on-site loss assessment.
Result
If daily cumulative rainfall at the insured location exceeds 12 inches, the client receives a 50% payout of the $10 million insured limit, resulting in a $5 million payout, enabling rapid recovery and project continuity.
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.
