Parametric Insurance Protecting Universities from Severe Hail Damage

In collaboration with brokers, our parametric hail insurance offers a unique coverage solution when existing policies for universities & airports miss the mark, with immediate relief for those in hail-prone areas.

Download the PDF

As the severity of hail increases, traditional carriers have reduced capacity, raised prices, or retreated from the marketplace - leaving universities & airports unprotected. These industries are susceptible to hail due to their locations and their fragile and historical infrastructure

Parametric hail coverage is underwritten based on the probability of when and to what extent a hail event will occur, rather than the asset’s characteristics. With swift payout following a triggering event, it offers an alternative to universities & airports that must be repaired quickly so they can return operations.

A image of a university

Key benefits


Real-time monitoring and swift payouts help clients repair critical infrastructure and return to operations quickly


Provides a hedge against cancellations for e.g. outdoor campus events or airport procedures


Each structure is tailor-made to a client’s specific needs, risk appetite and budget


Covers previously uninsurable assets such as landscaping or outdoor fixings that are excluded or limited from traditional property policies

Underinsurance for historical architecture & infrastructure of universities worsens among traditional carriers

As climate change continues to face severe uncertainty, the severity of hail is expected to increase significantly, particularly across North America. Many states across the region have continued to see a soar in damages and insurance costs, where hailstorms make up over $10 billion dollars in property damage per year. 

Traditional carriers for universities have significantly reduced capacity, tightened terms & conditions, raised prices, or simply retreated from the market, inevitably leaving them uncovered for severe hail damage

Parametric products provide an alternative solution, as universities can receive immediate pay-outs, enabling regular campus procedures to return to normal. What’s more, parametric insurance also can cover historical buildings – particularly the case for older universities – which many traditional insurers often cannot as it is deemed as high-risk.

Descartes’ parametric insurance for hail damage offers an alternative risk transfer solution.

case study example

Case study example

A client experienced $3.25 million USD in damages after a severe hail storm hit their campus. Assets impacted included power utilities and the roofs/sidings of historical buildings with significant architecture. Within the traditional market, underwriters can penalize or exclude infrastructure that have not undergone upgrades, as they have a higher potential for damage.


These exclusionary terms left the client with greater uncovered losses. They also experienced campus interruption as a claims adjuster had to inspect the damage, a painstakingly slow process.


At their next renewal, the university opted to carve out their hail exposure to a parametric cover. This enabled a swift payout to get their campus operations back to normal while ensuring campus safety standards were met. They could also cover their historical buildings deemed too ‘risky’ to cover with the traditional approach.


We provided the client an alternative that better met their specific needs. Leveraging the latest AI techniques to accurately assess hail risk across their campus, the product ensures efficient financial recovery from future storms.

payout structure
The client would receive $5M USD
hail map

Did you like this case study ? Download it !

Download the PDF

Get in touch !

We look forward to pursuing the discussion with you

Contact us