Parametric Wildfire Insurance

Wildfires are increasing in severity and frequency, where industries like forestry, pulp & paper industries, and high value properties recognize their increasing exposure. Parametric insurance can help manage their financial risk and offers fresh capacity to exposed clients.

Addressing wildfire risk

Wildfires have had a devastating impact globally, and the UN projects a global increase of 14% in extreme fires by 2030. Throughout 2023, the peril cost $11 billion. As climate volatility heightens, wildfire risk is increasing, burning more often, more intensely, and for longer, with previously unexposed areas experiencing events like never before. 

As wildfire exposure to forestry and properties becomes exacerbated, many clients are seeking additional sources of capacity as a supplement or alternative to existing coverage. Descartes’ parametric wildfire cover offers an alternative risk transfer solution for particularly exposed industry sectors. We provide forestry investments, timber firms, pulp & paper companies, hospitality, and high-value properties with bespoke, first-in-class parametric coverage against wildfire risk anywhere in the world. 

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parametric wildfire insurance for forestry
Step 1


We assess and evaluate the client's wildfire risk, leveraging our proprietary risk model.

Step 2


Design a customized cover, fit to the client's unique needs, in which payout structures are indexed according to the burned area.

Step 3


Upon policy inception, we continuously monitor the insured's location for wildfires to determine whether a qualifying fire has occurred.

Step 4


Insured client receive a payout within days of the concluded coverage time frame, 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.

  • North America Hospitality Wildfire Parametric Wildfire Insurance for California See the case study
  • Asia Hospitality Wildfire Protecting Carbon Credit through Parametric Insurance See the case study

Our parametric approach to wildfire risk

Descartes’ parametric solutions offer a new form of resilience to wildfire. Customized precisely to clients’ exposure needs, we cover the entire risk season with a straight-forward, satellite-based solution.  

Descartes offers two parametric wildfire solutions, designed and structured as ‘Cat-in-a-Circle’ or ‘Burned Area’, using a combination of satellite imagery, long-term climate, and weather data. We leverage the latest scientific research to assess wildfire exposure and design bespoke covers for our clients. Insureds can be sure of what they will receive in the event of a wildfire throughout the risk period, with simple and transparent structures based on the event of a wildfire burning within a bespoke circle or on the number of hectares burnt and no exclusions of fires based on size.

wildfire rage in southern California

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