Parametric Tropical Cyclone Insurance

Corporates and public entities exposed to tropical cyclones are increasingly seeking reliable and sufficient coverage. Parametric insurance offers fresh capacity through an innovative approach, making it an attractive option for those at risk of direct and non-direct financial losses from these storms.

Addressing tropical cyclone risk

Tropical cyclones are the most expensive weather and climate disasters globally, with the highest average cost of $20.3 billion per event according to NOAA. Generating the most impact in terms of economic and insured losses in the Pacific, Indian, and Atlantic Oceans, corporations and public sector clients across various industries are increasingly feeling their effects.

The repercussions of a tropical cyclone extend beyond immediate property damage, imposing long-term economic burdens that can affect disaster areas for months or even years. This is especially true for industries such as hospitality, which heavily depend on tourism and the surrounding environment. 

Descartes’ parametric tropical cyclone insurance provides financial resilience by covering the full spectrum of economic losses caused by a tropical cyclone. This includes not only property damage but also non-damage business interruption, ensuring comprehensive support for recovery and continuity through data-backed, advanced parametric solutions.

Contact us

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Step 1


We assess and evaluate the client's tropical cyclone exposure, leveraging our proprietary risk model.

Step 2


Design a customized index cover, fit to the client’s needs, in which payout structures are indexed according to specific wind speeds and distance to storm track.

Step 3


Upon policy inception, we monitor the insured's location for tropical cyclones to determine whether a qualifying storm has occurred.

Step 4


Insured client receives a payout within days of reporting a loss, accelerating financial recovery and reconstruction.

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.

  • North America Hospitality Tropical Cyclone Unparalleled Descartes’ Protection Against Hurricanes See the case study
  • Oceania Hospitality Tropical Cyclone Parametric Insurance for Cyclone Protection in the Tourism Sector See the case study
  • Global Renewable Energy Tropical Cyclone Unparalleled Protection for T&D Against Nat Cat Exposure See the case study
  • Global Hospitality Tropical Cyclone Parametric Insurance Protecting Event Organizers See the case study
  • Oceania Hospitality Tropical Cyclone Typhoon Insurance: Covering Marinas Against Climate Risks See the case study
  • Oceania Hospitality Tropical Cyclone Parametric Insurance for Tropical Cyclones See the case study
  • Asia Renewable Energy Tropical Cyclone Unparalleled Protection for T&D Exposure in Bangladesh See the case study
  • Oceania Agriculture Tropical Cyclone Protecting Corporates with Parametric Insurance Against Cyclone See the case study

Our parametric approach to cyclone risk

Our parametric cyclone leverages near-real-time data on a cyclone event’s track and wind-speed. We monitor these trajectories in a jointly defined perimeter around the client’s insured locations – from single-spot covers to thousands of risks across different countries.

Our straightforward structure compensates for any hurricane-related direct or indirect financial loss by paying out pre-agreed amounts based on the maximum sustained wind speed reported along the cyclone’s trajectory and its distance to the insured’s location.

Descartes' product offers bespoke coverage for particularly hurricane-exposed industry sectors including real estate, hospitality, construction, and renewables. Our cover goes beyond physical damages, as for example in the hospitality sector we extend it to costs associated with the significant downtime of re-construction and renovation, consequent missed bookings and closure periods, evacuation of tourists, relocation of employees, and more.

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