Addressing Hail Risk in North America
Hail remains one of the most significant and costly severe weather perils in the United States. Severe convective storm (SCS) losses have accelerated rapidly in the 21st century, with six of the top seven annual U.S. SCS loss years recorded since 2020. Most notably, 2025 marked the third consecutive year in which economic losses exceeded $65 billion and insured losses surpassed $50 billion—much of it driven by hail and associated convective storm activity.
The impact of hail can vary significantly depending on hailstone size and storm intensity, ranging from dented vehicles and damaged siding to widespread roof destruction and business interruption. Year after year, hail ranks among the top contributors to insured catastrophe losses in the U.S., posing a persistent financial burden for insurers and reinsurers. Risk is further amplified by a 14% expansion in U.S. urban land area between 2000 and 2020, increasing the concentration of exposed assets, while rising construction and material costs continue to inflate claim severity. Despite periodic softening in the insurance market, modeling complexity, exposure growth, and repeated high-impact events have constrained traditional market capacity for corporate clients in hail-prone regions.
Descartes’ Parametric Hail Insurance Fills The Gap
We offer:
- Large capacity and fast indemnification process, ensuring clients can recover quickly.
- Customized coverage, structured to indemnify based on predefined stone size.
- Advanced radar data, giving clients a comprehensive picture of their hail exposure.
This innovative approach enables us to provide capacity in exposed areas and provide our clients with the most accurate assessment of their exposure, aligning seamlessly with their unique risk profile and financial parameters.
4 Steps to Parametric Coverage
Assess
We assess and evaluate the client’s hail exposure, utilizing our satellite and radar-based proprietary risk model.
Customize
Design a customized cover, fit to the client’s unique needs, in which payout structures are indexed according to hail stone size.
Monitor
Upon policy inception, we monitor the insured's location for hailstorms to determine whether a qualifying storm has occurred.
Payout
Insured client receives a payout within days of reporting a loss, accelerating financial recovery and return to normal operations.
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.
Who Should Consider This?
Leveraging the latest in radar and sensor technology, Descartes can offer fresh capacity where our clients require it most, particularly in industries reliant on solar panels, greenhouses, outdoor vehicle storage for car dealerships, high-value crops, and more that are based specifically in the United States, Europe, and Australia.
Capacity
Up to $100 million per contract
Key Features of Our Hail Cover
Our parametric hail product is designed to help clients fill their insurance program and have adequate protection.
- Robust Radar and Sensor Technology: The hail risk is assessed with high granularity, observing hailstone size and storm intensity.
- Direct Monitoring: Hailstorms are monitored directly, eliminating the need for on-site visits.
- Swift Indemnification: With real-time hail detection, payments are quickly released after a policy has been triggered.
Benefits Powered by Parametric Hail Insurance
Our parametric hail cover amplifies the effectiveness of parametric insurance:
- Prompt Compensation: A swift, transparent process that clients can rely on, excluding the need for a lengthy indemnity claims process.
- Data-Driven Approach: The observation of historical losses and risk modeling allows us to accurately address clients’ needs.
- Bespoke Policies: Coverage tailored to the client’s needs and budget.
Helping Brokers Deliver Innovative Parametric Hail Insurance Solutions
In full collaboration with the broker and client, our team is able to design a customized cover. The structure is calibrated to each insured asset, and hail exposure is continually monitored by radar data to provide real-time hail detection.
Partner with us to build resilience against the financial impacts of severe weather and other perils.
FAQ
What is the data source?
We use imagery from ground-based radars that are operated by the local meteorological agency.
How is the hail size determined?
The Maximum Estimated Hail Size (MESH) is determined by the data provider through an automated system which integrates the imagery from the U.S. radar network, as well as surface observations and numerical weather prediction models.
What damages are covered?
Our parametric policy covers any economic loss sustained from a triggering event, including but not limited to property damage, business interruption, and additional expenses. There does not have to be direct physical damage to trigger coverage.
How does the radar detect hail?
Radars continuously scan a wide range of atmosphere surrounding the asset location. The scans detect the presence of clouds, and the characteristics of particles contained within the clouds, such as water droplets, snow, hailstones, etc. This allows for precise detection of the hailstones and their size in diameter. Postprocessing techniques enable the distinction between hailstones, rain, and snow.
Contact Us
Whether you're quoting a complex risk, looking to break into new markets, or just curious about parametric insurance, our team is here to help you win. Reach out and we will get back to you within 48 hours.
