Key Challenges for the Region:
Extreme Hail Severity: Texas regularly experiences high-intensity hailstorms, with large hailstones capable of causing catastrophic damage to solar infrastructure.
Rising Insurance Pressure: Growing concerns around the insurability of renewable energy assets have reduced available capacity and driven insurance rates higher across the state.
Operational and Financial Impact: Severe hail events can result in major physical damage, operational disruptions, and prolonged revenue loss for large-scale solar farms.
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.
Hailstorms are one of the most damaging perils for solar energy assets, with large hailstones capable of shattering panels and rapidly reducing generation capacity.
Descartes’ Parametric Hail Insurance: Data-Driven Protection for Renewable Energy Assets
Descartes’ parametric hail insurance provides fast, transparent protection based on objective hail metrics such as maximum hail size and the percentage of area impacted. By relying on predefined triggers and third-party data, the solution enables immediate payouts without on-site loss adjustment. This approach delivers rapid liquidity to support recovery following severe hail events.
case study example
Parametric Hail Solution for Solar Farms in Texas
In March 2024, a severe hailstorm struck near Houston, Texas, causing extensive damage to a large solar facility in Fort Bend County.
Problem
This severe hail event caused operational disruptions for the Fighting Jays Solar Farm and resulted in an estimated $50 million in physical damage. It also intensified concerns within the insurance market regarding the insurability of renewable energy infrastructure exposed to extreme weather, further reducing available capacity and increasing insurance rates in Texas.
Solution
Parametric hail structures offer a data-driven insurance solution covering physical damage, loss of revenue, and operational costs. These covers are tailor-made for each client and provide immediate loss payment based on predefined hail size and impacted area parameters, eliminating the need for traditional loss adjustment.
Result
Had this parametric hail solution been in place at the time of the March 2024 event, the Fighting Jays Solar Farm would have received a 65% payout of their chosen insured limit, providing rapid financial support following the hailstorm.
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.
