Excess precipitation events lead to soil erosion, crop damage, and increased flood risk. When occurring for intense or prolonged periods, they can carry severe consequences for various industries ranging from crop production, construction, to food & agri businesses, as well as global supply chains.
Climate change can influence the frequency and intensity of excessive precipitation – driving significant business interruptions, damages, and human impacts across the globe. For highly exposed industries, such as the agricultural sector, too much precipitation can cause just as much damage as excessive heat and/or drought.
In 2022, parts of Australia endured significant rainfall, marking it as the wettest year on record for the country’s east coast, with over USD 9.2 billion in insured losses. Meanwhile in the northern hemisphere, five US states experienced destructive flash floods as the result of separate 1-in-1,000-year rainfall events which occurred within a 5-week period. In China, severe rain events caused deadly floods, resulting in almost USD $70.4 million in losses.
As corporates face continued exposure to excessive precipitation, traditional modeling and insurance products miss the mark, offering limited and highly priced means for clients and their assets. Descartes provides a new generation of insurance protection against adverse weather and excess precipitation. Using in-house algorithms, machine learning, IoT and climate models derived from gridded satellite data, we provide agribusinesses, contractors and corporates with bespoke, first-in-class parametric coverage against excess precipitation anywhere in the world.