Key Challenges for the Region
Increasing frequency of heavy rainfall leading to widespread flooding across England
Business interruption and supply chain disruption in industrial regions
Flood-related losses and delays not fully covered by traditional insurance
Key Benefits of the 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.
Flooding has become a growing threat across the UK. Severe rainfall events, such as Storm Henk in January 2024, caused near-record water levels, disrupting infrastructure and forcing the temporary closure of industrial and manufacturing sites.
Descartes’ Parametric Flood Insurance: Rapid Payouts Based on On-Site Flood Depth
Descartes’ parametric Flood-at-Location insurance provides fast, flexible financial support when flooding occurs. Using on-site water level sensors and pre-agreed payout structures, the solution ensures transparent and rapid compensation without the delays of traditional loss assessment.
case study example
Parametric Flood Solution for Manufacturing Operations in England
A manufacturing company operating in England faced increasing exposure to flood-related disruptions.
Problem
The company requires high insurance limits to protect against revenue losses caused by supply chain disruptions. Typhoons such as Krathon, which struck Taiwan in October 2024, can lead to the temporary shutdown of major ports including Kaohsiung. These closures result in shipment delays, creating significant financial exposure for the company.
Solution
To strengthen its flood resilience, the client could opt for Descartes’ Flood-at-Location parametric cover. This solution provides rapid payouts based on flood depth recorded on-site using sensors provided as part of the service, allowing immediate access to funds after a flood event.
Result
If floodwater recorded on-site reaches 60 cm, the manufacturer would receive £7 million, representing 70% of the £10 million insured limit, enabling swift recovery and operational 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.
