Addressing Bushfire Risk
Bushfires have had devastating impacts across Australia. The 2019–20 Black Summer bushfires burned over 24 million hectares, destroyed over 3,500 homes, and caused an economic loss estimated at A$100 billion—the costliest bushfire season in Australia's history. Additionally, bushfire seasons are lengthening, with the fire risk now extending beyond the traditional summer months.
With climate volatility intensifying, fires are burning more frequently, with greater intensity, and for longer durations—even in regions previously unaffected. As bushfire risks continue to escalate, businesses are seeking additional coverage beyond traditional insurance. Descartes’ parametric bushfire cover provides an innovative solution tailored for high-risk sectors, including:
✔ Forestry investments
✔ Timber firms
✔ Pulp & paper companies
✔ Hospitality and tourism
✔ High-value properties
Our coverage ensures businesses receive fast financial relief after a bushfire event, helping them recover and rebuild without delays.
Download our Product Sheet (PDF)
How Our Parametric Bushfire Insurance Works
Step 1 – Risk Assessment
We evaluate your bushfire exposure using our proprietary risk model, leveraging satellite and climate data.
Step 2 – Customised Coverage
A tailored insurance solution is designed to fit your specific needs, with payout structures indexed to the burnt area.
Step 3 – Continuous Monitoring
From the moment your policy begins, we monitor your insured location in real-time, detecting any qualifying bushfire events.
Step 4 – Rapid Payouts
If a covered bushfire occurs, payouts are processed within days—ensuring quick financial recovery and business continuity.
Our case studies are all over the world
Utilizing Machine Learning and real-time monitoring from satellite imagery & IoT, our state-of-the-art technology helps businesses bounce back faster against climate, cyber and other emerging risks.
Proven Solutions for Businesses
With advanced machine learning, satellite monitoring, and IoT technology, Descartes delivers cutting-edge parametric solutions to help businesses mitigate risks from bushfires, climate volatility, cyber threats, and other emerging perils.
Our Parametric Approach to Bushfire Risk
Descartes’ parametric insurance solutions provide certainty and resilience. Designed to match each client’s risk profile, we offer coverage for the entire bushfire season using straightforward, satellite-based solutions.
We offer two parametric bushfire structures:
✅ ‘Cat-in-a-Circle’ – Coverage is triggered if a bushfire occurs within a predefined area.
✅ ‘Burnt Area’ – Payouts are based on the number of hectares burned, ensuring no exclusions based on fire size.
Our approach is transparent, data-driven, and tailored to each client’s exposure, ensuring clear and predictable payouts when disaster strikes.
Get in Touch
Contact us today to learn how Descartes’ parametric bushfire insurance can safeguard your business from increasing fire risks.
Frequently Asked Questions
What constitutes a bushfire?
A bushfire is defined as an unmanaged and uncontrolled fire that originates outside the coverage area and has not been caused by intentional or wilful misconduct, as outlined in the policy terms.
How is the coverage area defined?
The coverage area is determined by identifying the insured location(s) and adding a buffer of a predefined shape, typically 100 metres, around the insured location(s). The exact geometry of the buffer area is finalised during underwriting, in collaboration with the broker and client.
How is a payout determined?
We utilise high-resolution satellite imagery to assess burned areas from each bushfire event near the coverage area. To ensure objectivity, an independent third-party agent is commissioned to certify the data used to determine whether a payout is triggered. After processing the raw satellite imagery into a burned area map, this is overlaid on the insured location(s) and the coverage area. If a bushfire has breached the predefined coverage area, the policy is triggered, and the client is entitled to a payout.
What data providers are used?
We use publicly available satellite imagery sources such as Sentinel-2, published by the European Space Agency (ESA). The data provider will be specified in the policy.
What is the resolution of the data?
Depending on the satellite imagery data source, resolution can be up to 10 by 10 metres. This high-resolution data allows us to detect localised bushfires with precision, ensuring accurate identification of burned areas.
What types of damages are covered in a parametric bushfire policy?
A parametric policy covers any economic loss sustained due to a triggering event, including but not limited to:
✔ Property damage
✔ Business interruption
✔ Extra expenses
There does not have to be direct physical damage for coverage to be triggered.
How does the claims process work?
1️⃣ The client notifies their broker, Descartes, and/or the risk carrier of the loss.
2️⃣ After the bushfire event, we collect final certified data from the independent agent to verify whether the event intensity meets the payout threshold.
3️⃣ An event report is created, stating the maximum monetary amount recoverable based on the structure outlined in the policy.
4️⃣ The client issues a Declaration of Loss Statement to Descartes and/or the risk carrier.
5️⃣ Once the Declaration of Loss Statement is received, the payout is processed in accordance with the policy terms—allowing the client to resume operations swiftly.
Interested in a solution ?
