Basics of Parametric Insurance
If you, or your client, are new to parametric insurance it’s helpful to understand the basic concept of parametrics first. Unlike traditional insurance, which relies on lengthyloss adjustment procedures, parametric insurance pays out when a predefined event (i.e. flood, hurricane, earthquake, etc.) occurs as measured by a specified parameter, or index.
Driven by objective data and real-time monitoring from IoT, radar,and satellite imagery, parametric insurance provides a means to guarantee liquidity, via swift, direct payout, following a qualifying event. With no on-the-ground loss adjustment required, a parametric coverkeeps cost low while offering precise protection.
Why Parametric Insurance
Today’s hard market and the challenge of climate change calls for a revolutionary approach to insurance. At Descartes, our mission is to offer a parametric insurance that builds resilience, in all market conditions, against climate risk.
Descartes Underwriting’s innovative edge lies in our best-in-class risk modelling, proprietary data integration algorithms, & experience designing bespoke insurance covers.
Whereas traditional products assess risk based on historical loss records alone, our parametric solutions model the underlying phenomenon of a given risk. This allows us to identify and incorporate climate related trends and expected impacts in ways that standard products that take a rear-view mirror cannot.
Our unique Parametric Approach
Client & Broker centric – whether corporate or a public sector, a client’s exposure and risk transfer needs are the basis from which we design our flexible parametric solution. Our data-driven approach is:
- fully transparent
- customized to your client’s needs
- more affordable than traditional covers
- & provides swift claims payment
Some Data we might need from you
- Location file or GPS coordinates
- Historical loss records
- Installation of on-site sensors or other data for certain hazards
- For specific products, additional relevant data may be required
Reach out to our business development team for a quote
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