At Descartes, we model these storms in two ways:
Cat in a Circle:
Index: one, two or three circles (of pre- determined distance) centered around the insured location(s) with a bespoke payout structure based on the client’s needs
Data provider: JTWC
Coverage period: 1-year or client selected storm season
Wind at location:
Index: Maximum sustained wind speed at insured location(s) with a bespoke payout structure based on the client’s needs
Data provider: Reask
Coverage period: 1 year or client selected storm season
Why choose a parametric cover?
Added transparency:
with pre-agreed thresholds & payout amounts
Bespoke policies:
with custom covers for one or multiple locations
Swift claims payout:
in a matter of days or weeks after a loss event
case study example
Typhoons
Learn how a hospitality client in the Philippines could protect their properties against typhoons:
Problem
On December 12, 2021, a category 4 typhoon known as 'Typhoon Rai (known locally as Typhoon Odette)' ruptured through the Philippines, causing significant damage.
Solution
Pain Point: A large hospitality group was in need of a typhoon program for a series of properties located in the Philippines. They were scrambling for coverage, as their traditional carrier lowered their sublimits for typhoons, while increasing rates following Typhoon Rai.
Result
Solution: If the client had opted for a parametric cover, a typhoon cover specifically for the destruction of assets would have been able to meet their specific needs. Given the straightforward simplicity of the cover, the policy would be appropriately priced to match the client's budget and ensure a full-limit cover.
Interested in a solution ?
