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: BOM
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
Cyclone risk for banana plantations
Learn how one corporate client used a cyclone parametric to protect their banana plantations between Cairns and Townsville:
Problem
On January 26, 2011 a category 5 cyclone known as 'Cyclone Yasi' ruptured through northern Queensland, Australia, causing significant damage with recorded wind speeds above 285 km/h
Solution
Pain Point: The client experienced considerable damage to their banana plantation in Mission Beach, with lost revenue due to lost harvest and significant business interruption delays
Result
Solution: If covered at the time of the event, our catin-the-circle cover would have provided the client with 100% of the policy limit. The swift payout would have also enabled the plantation to purchase the necessary sucker volume to quickly replant to return to business as fast as possible.
The client would receive 10 million AUD
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.
