Financial institutions, including banks, private equity firms, and real estate funds, carry within their portfolios significant exposure to natural perils and extreme weather events that threaten the profitability of their investments. As a consequence of tropical cyclones, earthquakes, floods, and hail storms, these events can severely impact the profitability of portfolios leading to potential loan defaults, underperformance, and a challenging sales environment. Alongside the growing regulatory demands to account for such risks, parametric insurance emerges as a flexible and reliable tool for understanding and managing natural risks within portfolios, while obtaining stable premiums over many years amidst volatile market conditions.
With parametric insurance, financial institutions and lenders can optimize their natural risk exposure, ensure continuous profitability in case of catastrophes, and support the risk and insurance management capabilities of their clients.
Descartes’ advanced algorithms, extensive data access , and deep risk insights enable us to design bespoke solutions tailored to the specific exposures of each portfolio. Our global insurance capacity covers even the most remote locations, allowing banks to hedge their risk even in capacity-strained regions—from Florida to Fiji.
Enhancing the financial freedom of our clients, we offer prompt payouts within days of an event, enabling risk managers to address both direct and indirect financial losses arising from natural catastrophes. Thus, parametric insurance provides full flexibility to allocate funds as needed and empowers financial institutions with reliable, quick, and transparent event data to meet the expectations of investors and stakeholders.
Key Benefits of Parametric Insurance
✓ Clear, Measurable Triggers
Policies are based on objective data—so there’s no ambiguity about when payouts happen.
✓ Tailored Coverage
Each policy is built around the client’s specific risks and budget, filling gaps traditional insurance cannot.
✓ Fast, Automatic Payouts
When a trigger is met, funds are paid quickly—no claims process, no delays.
✓ Flexible Use of Funds
Payouts aren’t tied to proven losses, giving clients immediate support for any financial impact.
Risks & Hazards
Global Parametric Insurance Specialist
10 countries with offices around the world
150+ scientific experts: risk modelers, data scientists, and software engineers
20+ perils covered with best-in-class (re)insurers, written on A+ paper
USD 140M capacity per policy even in highly exposed regions & for clients with a history of NatCat losses
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.
