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.
Assess
We assess and evaluate the client's tropical cyclone exposure, leveraging our proprietary risk model.
Customize
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.
Monitor
Upon policy inception, we monitor the insured's location for tropical cyclones to determine whether a qualifying storm has occurred.
Payout
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.
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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