The Challenges Of The Region
Severe capacity restrictions and the exit of many commercial insurers from the market
Increasing in numbers of self-insuring clients due to the withdrawal of capacity for flood
Claims assessments and payments being delayed due to disputes regarding the definitions and exclusions in the wording (e.g., flood definitions – pluvial/fluvial, property contents, inventory, etc.)

Key benefits of parametric insurance
Fluvial (river) flooding, one of the two major types of flooding, is a result of excessive rain causing water levels at local rivers to rise and overflow. This type of flooding can lead to property damage, a halt in operations, and other non-damage business interruptions.
Descartes’ Parametric River Gauge Flood Insurance: Custom, transparent coverage to help clients remain resilient
Thanks to the expertise and technology behind Descartes’ River Gauge Flood Solution, water levels exceeding a predefined threshold at a preselected water gauge trigger quick indemnity amid a flood event, allowing businesses to mitigate financial losses and maintain the necessary liquidity to stay resilient.
case study example
Parametric River Gauge Flood Solution for Brisbane, Australia
A real estate owner in Queensland, Australia
Problem
A real estate owner located along the Brisbane River in Queensland, Australia, had suffered losses during the 2011 and 2022 floods. Hard market conditions and past losses left them facing significant spikes in rates, so they opted to be fully self-insured in recent years.
Solution
If repeated, with floodwaters surpassing the pre-defined policy threshold of 5 metres, they would receive a rapid insurance payout of A$25 million to cover repair costs and bridge the business interruption impacts on their balance sheet.
Result
If repeated, with floodwaters surpassing the pre-defined policy threshold of five metres, they would receive a rapid insurance payout of A$25 million to cover repair costs and bridge the business interruption impacts on their balance sheet.

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