Client Need: A major international infrastructure operator needs to insure a highway in the Mediterranean, a peak earthquake zone and exposure for many business players. The client and their broker face challenges attaining full capacity on this linear asset.
Pain Point: Insuring the highway, including all tunnels, bridges, and toll stop infrastructure, to their full value is a requirement from the financial parties involved. However, traditional capacity falls short in meeting this need due to the difficulties in assessing the risks on these widely dispersed and differentiated structures
Our Solution: Descartes offered parametric earthquake cover for the entirety of the highway using our proprietary models. With an innovative structure, we could take into account the changing soil-nature and civil infrastructure along the route, adjusting payout for each earthquake severity accordingly.
The Result: The highway gets covered to the full required limit with bespoke terms that satisfied both risk management and financial parties. The simple, straightforward payout structure was much appreciated by the client, providing certainty of liquidity within days of a triggering event.