When we talk to clients across the US, one theme keeps coming back: flood is changing, fast. During our recent webinar, our experts — Brian Thompson, Austin Roberts, Robert Rittenhouse, and Hamid Khandahari — shared insights from their work across North America. Together, they discussed how flood patterns are evolving and how parametric insurance can help bridge protection gaps.
In the past decade, the US recorded 19 billion-dollar flood disasters, compared with 10 in the previous ten years. Inland states are now facing rainfall and runoff levels once considered rare. As Hamid explained, “In 2022 alone, the US experienced five ‘1-in-1000-year’ rainfall events within two weeks.”
Flood risk is growing more frequent, more variable, and more widespread. For us at Descartes, that means rethinking how protection is designed, making it faster, simpler, and directly tied to data.
Why traditional cover leaves you exposed
NFIP and standard property policies remain essential foundations of flood protection, but they weren’t built for today’s scale or complexity.
- Coverage gaps: Basements, outdoor structures, and temporary living expenses are often excluded.
- Low limits: Commercial coverage typically caps at $500k for buildings and $500k for contents.
- Operational delays: A 30-day waiting period and long claims processes mean delays when funding is most needed. After Hurricane Helene (2024), only 42.7% of commercial claims had closed by June 2025.
As Robert noted, “Traditional programmes do their job, but they leave significant protection gaps. Parametric insurance complements what already exists by providing fast, transparent liquidity.”
We don’t aim to replace NFIP or property insurance. Instead, we design complementary layers that target exclusions, sub-limits, and non-damage business interruption (NDBI), areas where speed and flexibility matter most.
The Descartes toolkit: one peril, multiple ways to solve
We don’t sell an off-the-shelf policy. “Each client and each risk is treated independently,” said AVP Austin Roberts. “We customize the problem you’re facing.”
1) Storm Surge (model-based)
For coastal assets in Western Florida and the Mississippi coast (rolling out to the East Coast next), we use the same operational model FEMA and first responders rely on: ingesting rainfall, runoff, wind speed, forward speed and elevation. “It’s extremely accurate,” Austin explained, and avoids the concern of a sensor being damaged by surge.
2) River Level
Where a USGS gauge sits near your site, we can tap that public data and structure a transparent trigger. If the gauge is miles upstream and hard to “trust intuitively,” we’ll consider alternatives (including on-site sensing).
3) Excess Rainfall
Ideal for flash-flood contexts or to hedge cancellation/contingency exposure in sport, entertainment and tourism—when excess precipitation itself is the problem.
4) Flood-at-Location (Sensor-based) – our flagship
Our flagship solution in the US. A small on-site sensor measures maximum flood depth directly at the insured premises with 2 mm accuracy, turning local data into objective, verifiable triggers.
Flood-at-Location, explained
How it works
We measure the maximum flood depth at your location. To quote accurately, we analyse:
- Address or GPS coordinates
- Historical flood evidence (loss reports, watermarks, or photos)
- Hydrological studies or elevation certificates
- Desired coverage limit and payout structure
Reliable technology
Our sensors are battery-powered (5–7 years), IP86/IP67-rated, and hurricane-tested. Each unit connects to a live cloud dashboard with SMS/email alerts. We manage installation, diagnostics, and maintenance to ensure continuous performance — even during severe events.
Capacity and payout
- Coverage up to $70 million per contract
- Single or multi-site configurations
- Typical term: 12 months (multi-year options available)
- Predefined payout scale: the higher the water, the higher the payout
- Average claim time: 2–4 weeks, offering quick liquidity when it’s most needed
Who benefits (and why)
While flood risk affects every sector, certain industries are particularly exposed:
- Real estate & hospitality: Strong NDBI needs; revenue directly linked to occupancy.
- Manufacturing: Business interruption exposure; speed to liquidity shortens recovery.
- Public entities: Flexible funds that can support humanitarian response, infrastructure, and property repair amid NFIP/FEMA uncertainty.
- Data centres: Large insured values and the need for fast, objective triggers.
Flood is increasingly universal — from coastal resorts to inland industrial hubs. Our parametric solutions help each organization manage volatility with clarity, speed, and precision.
How we’ll work with you
- Share locations & objectives. Provide addresses/GPS and any available flood evidence (watermarks, loss reports, studies, elevation certificates). We’ll translate that into trigger design options.
- Co-design the trigger. We align thresholds to your tolerance and budget, balancing responsiveness and cost, and decide which data source fits best (model, gauge, sensor—or a combination).
- Install & monitor (if sensor-based). We handle survey, expert installation, remote diagnostics and maintenance; you get a live dashboard and alerting.
- Transparent claims. When the trigger is met, payout follows the schedule—weeks, not months.
“We don’t try to replace your programme. We solve specific problems, closing gaps and removing uncertainty where it matters most.” — Descartes US team
Why parametric matters
Flood events are becoming more frequent, more unpredictable, and more damaging. Traditional insurance is essential, but it can’t always deliver the speed and transparency modern organizations need.
Parametric insurance transforms measurable data, rainfall, water level, flood depth, into immediate financial response. It’s an evolution in how we protect against flood risk: faster, clearer, and more aligned with real-world impacts.
Closing the session, Brian Thompson, Senior Vice President of Business Development for North America, reaffirmed Descartes’ commitment to innovation and transparency: “We’re rethinking how flood risk is managed — bringing data, science, and technology together to offer faster, fairer protection for our clients.”
This article summarizes insights from Descartes’ US Flood webinar (October 2025). To watch the full webinar, click here.
Talk to our team
To explore how a parametric layer can strengthen your flood resilience, contact us at https://descartesunderwriting.com/contact
