In regions prone to seismic activity such as Turkey, Mexico, Chile, California, earthquake insurance is not just a necessity—it’s a strategic business decision. Traditional insurance models find it difficult to provide swift financial relief post-disaster, leaving businesses vulnerable during critical recovery periods. Recent data highlights a troubling gap between the insured and full economic losses in seismic events. For instance, the 2023 Turkey and Syria earthquakes resulted in staggering economic damages totaling $92.4 billion, yet only $5.7 billion was covered by insurance. This discrepancy underscores the critical need for comprehensive coverage strategies that can mitigate financial vulnerabilities in the aftermath of major disasters.
How Parametric Insurance Works
Unlike conventional insurance that requires assessment of actual physical damage, parametric insurance triggers payouts based on predefined earthquake parameters, ensuring clarity and speed in settlement. For businesses in sectors such as hospitality, real estate, manufacturing, and construction, this means immediate access to funds, facilitating quicker recovery and continuity of operations.
Why Choose Descartes’ Parametric Solution?
Descartes Underwriting offers tailored parametric earthquake solutions designed to meet the specific needs of various industries. Our coverage plans are fully customizable to client specifications, including single or multi-location coverage, and thanks to predefined parameters, compensation is quick. This approach minimizes the typical post-disaster assessment delays and provides insured parties with the necessary liquidity to resume operations without delay.
With Descartes, businesses can secure their operations against the unpredictable nature of earthquakes, ensuring that when the ground shakes, their financial stability remains rock solid.
Want to find out more about our parametric earthquake insurance solution? Download our product sheet today.
