Client Need: A large hospitality group with extensive hurricane exposure in the Caribbean was facing a more than 50% premium increase in their traditional program despite being loss-free, simply due to capacity restrictions in this peak zone.
Pain Point: Increasing their insurance budget at present, when the hospitality industry is sailing a rough sea, was not an option. The client needed to find a flat-premium option, while guaranteeing a full-limit cover in order to meet contractual obligations with its lenders.
Our Solution: Hand-in-hand with the client’s in-house risk management, we designed payout structures for each wind speed and each perimeter around all insured locations. Given the straight-forward simplicity of the cover, we were able to price the policy to both match the client’s budget and ensure a full-limit cover. The client could confidently carve-out their peak hurricane exposure from their traditional property program and fully place it with our parametric cover.
The Result: Descartes’ dedicated cyclone parametric product allowed the client to keep premium flat and maintain a full limit cover on an international program, satisfying their finance leadership, in-house risk management, and external lending parties.
Our AI-driven technology monitored the parameters in real-time, notifying the client when the policy was triggered by an early-season hurricane and automatically paid out the policy claim. The client received the funds within 5 days of the event and was able to cover repair costs & business interruption expenses seamlessly.