Parametric Insurance Against Typhoon for a Hospitality Group

Typhoons expose businesses to property damage, non-damage BI, extra expenses, and long-term economic burden.

Download the PDF

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

Area impacted by storm

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


Learn how a hospitality client in the Philippines could protect their properties against typhoons:


On December 12, 2021, a category 4 typhoon known as 'Typhoon Rai (known locally as Typhoon Odette)' ruptured through the Philippines, causing significant damage.


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.


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.

payout structure
storm path

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