Why This Matters For Data Centers
Data centers run high-availability infrastructure where liquidity speed matters. In a flood event, waiting for post-loss adjustment can slow recovery and continuity plans. Descartes’ parametric approach is designed to deliver compensation within days, providing rapid liquidity when you need it most.
This solution is designed for under construction sites, operational sites, large-scale facilities, small-scale facilities (e.g., edge), adjacent power plants and more
It can be used to fill exclusions (e.g., Business Interruption), address high deductibles in traditional property policies, or provide top-up capacity above aggregate sub-limits that can be rapidly exhausted in extreme events
Product Overview
- Flood perils covered: Fluvial (river) flooding, pluvial (rainfall) flooding, and coastal (surge) flooding
- Index: On-site flood depth reported by sensors (maximum depth above ground, measured in feet)
- Coverage: Single or multi-location
- Geography: United States of America
- Limit: Up to $80 million per contract
- Insured period(s): Customized to client needs
Why Choose Descartes
- Fast liquidity when it matters: Compensation is delivered within days, helping operators manage high-availability infrastructure with rapid access to funds.
- Reduced basis risk with on-site measurement: On-site sensors provide an accurate flood-depth reading at the insured location, offering a local, reliable mechanism to trigger payouts and help reduce basis risk.
- Robust sensor technology: UDlive sensors are reliable and robust, can handle adverse conditions across a wide range of water quality, and use high-frequency waves to measure depth accurately—remaining virtually unaffected by temperature, turbulence, and obstacles.
- Payout structure designed around expected losses: Descartes analyses historical flood events using multiple data sources and compares them to the client’s past events/loss history (if any) and site information (countermeasures, topography, infrastructure). If no loss history is available, expected losses are estimated via broker/client discussions or expert judgement and proxies from similar cases.
How Flood-at-Location Works
1) On-site sensor installation
Flood depth is measured at the data center’s location using UDlive sensors installed by experts.
2) Trigger and payout
Water depth is measured and reported in real time. When the pre-agreed flood depth threshold is reached, the payout is calculated according to the predefined payout structure.
3) Rapid liquidity
Compensation is delivered within days, supporting continuity of operations.
Interested in a solution?
Contact our commercial team.
FAQ
How is the payout structure determined?
We analyze historical flood events by using a combination of different data sources and compare them to the client's past events, loss history, if any, and site information (flood countermeasures, topography, infrastructure, etc.). The payout structure is designed to closely match the flood depth to the client’s expected losses. If no loss history is available, we estimate projected losses based on discussions with the broker and client or with expert judgment and proxies from similar cases.
What is the index based on?
The index is based on the maximum flood depth above the ground as measured in feet by sensors installed at the client’s location.
What types of damages are covered under a flood parametric policy?
A parametric policy covers any economic loss sustained from a flood event, including but not limited to property damage, business interruption, and extra expenses. There does not have to be direct physical damage to trigger a payout.
What are the advantages of using on-site sensors?
On-site sensors provide an accurate reading of the flood depth at the insured location. This helps to reduce basis risk by providing a local, reliable mechanism to trigger flood payouts.
How does the claims process work?
1) The client notifies their broker, Descartes and/or risk carrier of the loss.
2) After the event, we collect the final data from the third-party certification agent, who assesses if the intensity of the event has triggered the policy and at what payout level.
3) Using the collected data, we then create an event report stating the maximum monetary amount to be recovered based on the payout structure defined in the client’s policy.
4) After receipt of the event report, the client issues a Declaration of Loss Statement to Descartes and/or the risk carrier.
5) After receipt of the Declaration of Loss Statement, the client receives the payout in agreement with the policy terms, allowing them to accelerate continuity of operations.
How reliable are UDlive sensors?
UDlive sensors are reliable, robust, and can handle adverse conditions with a wide range of water quality. They rely on high-frequency waves to accurately measure the flood depth, which allows them to remain virtually unaffected by temperature, turbulence, and other obstacles.
