Addressing earthquake risk
In 2023 alone, the world witnessed several billion-dollar seismic events. Among them stood the Turkey-Syria earthquakes, ranking as one of the most catastrophic natural disasters of the past century and resulting in a staggering $92.4 billion in economic losses, with a mere 6 percent covered by insurance.
In the aftermath of such disasters, companies operating in highly exposed regions across the world, such as Turkey, Mexico, Chile, California, can face an arduous insurance renewal process. These renewals are marked by tightened capacity and stricter underwriting guidelines, prompting the emergence of parametric products and multi-year structured solutions as a formidable option for risk mitigation.
Descartes’ parametric earthquake insurance provides highly in-demand insurance capacity by designing bespoke payout structures based on data and reporting from leading earthquake institutions. Our covers are flexible in their targeted approach, catering to single or multiple locations. The disbursal of parametric funds in the event of a payout enables mitigation of physical damage to assets or property, as well as addressing non-damage effects such as revenue loss incurred due to area closures.
Assess
We assess and evaluate the client’s earthquake risk exposure, leveraging our proprietary risk model.
Customize
Design a customized cover, fit to the client's unique needs, in which payout structures are indexed according to earthquake intensity.
Monitor
Upon policy inception, we monitor the insured's location for earthquakes to determine whether a qualifying earthquake 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 earthquake exposure
Supported by a specialized earthquake team of PHDs, natural risk modelers, and data science engineers, our earthquake risk model can evaluate the risk profile of each client, tailored to their distinct assets & location. With our proprietary model that gives us the most accurate view into a client’s exposure, we are able to offer valuable earthquake insurance capacity, even in highly exposed regions.
Our parametric earthquake product caters to the diverse needs of our clients offering unique indices and payout structures based on magnitude, peak ground acceleration, modified mercalli intensity (MMI), and more. These parameters are designed to activate payments swiftly through real-time monitoring made possible by leading earthquake institutions such as the USGS.
Our success story
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