Addressing Excessive Rain in North America
In the U.S., excess precipitation creates cascading risks across critical infrastructure and economic systems. Intense rainfall and flooding can damage power generation and transmission assets, overwhelm stormwater and wastewater systems, disrupt transportation networks, and delay construction while increasing repair and insurance costs. Urban flooding and sewer overflows degrade water quality and pose public health hazards, while business interruptions and infrastructure failures strain emergency services, insurers, and financial institutions.
Parametric insurance offers a streamlined alternative to traditional coverage by using objective, remotely sourced data—such as rainfall measurements—to trigger payouts, eliminating the need for on-site loss assessments. Once a predefined threshold is met, policyholders can receive payment within weeks, rather than waiting months for claims to be adjusted. This rapid disbursement provides immediate liquidity, enabling recipients to stabilize operations, cover urgent expenses, and recover more quickly from unexpected shocks.
Our Parametric Approach to Excessive Rain
Descartes’ parametric excess rainfall insurance offers critical capacity by:
- Leveraging advanced precipitation and remote-sensing data to precisely assess risk at the insured location, enabling coverage even in highly exposed areas
- Providing flexible, location-specific solutions calibrated to align with each client’s unique risk profile and financial parameters
- Protecting against the financial impacts of extreme rainfall, including flooding, business interruption, operational disruption, and elevated recovery costs
- Delivering rapid, transparent payouts based on pre-agreed thresholds, eliminating the need for traditional on-site loss adjustment
Our parametric approach combines satellite observations and robust precipitation datasets to deliver a highly accurate, data-driven assessment of excess rainfall risk.
Parametric Cover in 4 Steps
Assess
We assess and evaluate the client's risk exposure to excessive rain, leveraging precipitation datasets and satellite data.
Customize
Design a customized cover, fit to the client’s unique needs payout structures are indexed according to cumulative precipitation or number of rainy days.
Monitor
Upon policy inception, we monitor the insured's location for precipitation to determine whether a qualifying event has occurred.
Payout
Insured client recieves a payout within weeks of the concluded coverage time frame to cover damages incurred and boost liquidity.
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?
Descartes’ parametric excess rainfall insurance is designed for organizations exposed to heavy precipitation and flooding risk, including agribusinesses, food and beverage companies, construction firms, real estate owners, infrastructure operators, utilities, and public sector entities. Coverage extends beyond direct physical damage to address broader financial impacts such as business interruption, project delays, supply chain disruption, revenue shortfalls, elevated repair costs, and operational strain caused by extreme rainfall, saturated ground conditions, and flooding events.
Capacity
Up to $80M per contract
Benefits Powered by Parametric Insurance
Our parametric excess rainfall insurance strengthens resilience by:
- Covering the full spectrum of economic losses caused by heavy precipitation, flooding, and prolonged saturated conditions
- Protecting against both direct physical damage and non-damage business interruption impacts across operations and supply chains
- Delivering data-driven, pre-agreed parametric payouts to support rapid recovery, safeguard balance sheets, and maintain operational continuity
Advanced Parametric Weather Solutions for Insurance Brokers
In full collaboration with the broker and client, our team is able to design a customized cover that is structured to indemnify based on cumulative precipitation or number of rainy days, as reported by a third-party data source. The structure is calibrated specifically for the type of crop and property, and precipitation is continually monitored during the specific coverage period.
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.
