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. 2025 marked the third consecutive year in which U.S. SCS 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. 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. Parametric hail insurance supplements traditional high-deductible property layers and addresses non-damage business interruption exposures across solar and renewable energy assets, where hail can be especially disruptive.
Parametric hail insurance helps organizations secure additional capacity and rapid liquidity by providing transparent payouts linked to objective hail measurements rather than lengthy claims adjustment processes.
Covered Industries
Energy & Renewables
Hail damages solar assets, disrupts power generation, and causes production and business interruption losses.
Financial Institutions
Hail-related property damage and business interruption can increase financial losses and operational costs.
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.
How our parametric hail cover works
Descartes' parametric hail product uses ground-based radar data, operated by local meteorological agencies, to detect hailstone size and storm intensity with high granularity. Coverage is structured to indemnify based on a predefined stone size—the Maximum Estimated Hail Size (MESH), determined through an automated system integrating radar imagery, surface observations, and numerical weather prediction models. Hailstorms are monitored directly, eliminating the need for on-site visits.
Feature | Traditional insurance | Descartes parametric |
Claims & loss adjustment | Loss assessed on-site. Subjective, complex, open to dispute. | Triggered by independent third-party data. Objective and transparent. |
Payout timeline | Months, sometimes years, of adjustment. | Days to weeks after the event. |
Use of funds | Usually restricted to repairing physical assets. | Flexible. Covers any financial loss, including non-damage business interruption. |
Coverage | Off-the-shelf, limited room to customize. | Tailored to your exposure and budget. |
Risk period | Annual or long-term agreement. | Flexible: short-term, annual, or long-term. |
Where a parametric hail layer fits
Parametric is most powerful as a complement to your existing program. In today’s market, it allows organizations to reinvest premium savings into closing the structural gaps a traditional policy leaves open. The most common ways clients put it to work:
- Buy down a high deductible: reduce retained exposure following severe hail events while preserving access to traditional insurance markets.
- Top up a sublimit: secure additional protection where hail-related coverage limits may be insufficient for large loss events.
- Cover non-damage business interruption: protect against revenue loss, operational downtime, project delays, and business disruption caused by hailstorms.
- Secure immediate liquidity: access rapid funds to support repairs, business continuity, and financial recovery.
- Wrap an exclusion: address hail-related exposures that may be excluded or only partially covered under traditional policies.
Who it's for
- Renewable energy: protection for solar farms exposed to hail damage, production losses, business interruption, lender requirements, and PPA-related financial impacts.
- Agriculture & high-value crops: protection against hail-driven crop damage and operational disruption.
- Greenhouse operators: coverage for structures and production assets vulnerable to hail impacts.
- Car dealerships: protection for outdoor vehicle inventories exposed to severe hail events.
- Universities & educational institutions: coverage for campus infrastructure, historical buildings, and operational continuity.
- Airports & public entities: rapid liquidity to repair critical infrastructure and restore operations following hailstorms.
Parametric coverage in 4 steps
Assess
Assess and evaluate hail exposure using proprietary radar and satellite-based risk models.
Customize
Design a customized cover with payout structures indexed according to hailstone size and storm intensity.
Monitor
Monitor insured locations continuously using advanced radar technology to detect qualifying hail events.
Payout
Receive a payout within days of reporting a loss, accelerating recovery and restoring operational continuity.
Global Parametric Insurance Specialist
10 countries with offices around the world
20+ perils covered with best-in-class (re)insurers, written on A+ paper
150+ scientific experts: risk modelers, data scientists, and software engineers
$15B+ capacity already deployed through corporate brokers
FAQ
For more information on parametric insurance, triggers, claims processes, coverage structures: Descartes FAQ Hub
What is the data source?
Imagery from ground-based radars 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 integrating U.S. radar network imagery, surface observations, and numerical weather prediction models.
What damages are covered?
Any economic loss sustained from a triggering event, including property damage, business interruption, and additional expenses—no direct physical damage required to trigger coverage.
How does the radar detect hail?
Radars continuously scan the atmosphere surrounding the asset location, detecting cloud particle characteristics to distinguish hailstones from rain and snow and measure their diameter.
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.
