Evolving trends for hail exposure & opportunities for hail insurance innovation
Commercial losses caused by hail have been increasing as climate changes and weather patterns shift across the globe, Placing significant strain on the capacity of the hail insurance market. Though the frequency of hail events has fluctuated over the last decade, their brutal impacts have ranged from extensive amounts of property damage and even loss of lives. In recent years, hail loss claims have increased in some areas in the US, especially Texas and Colorado that are among the most hail-prone cities.
Combined with the climate crisis, major factors behind the ever-increasing hail losses include: increased urban targets, population growth in hail-prone areas, and higher property values per unit area due to the expansion of industries such as high value agriculture, solar plants, and outdoor vehicle storage. Considering these factors and current trends, the claim and demand for hail insurance will continue to increase, calling for the need for advanced technologies that can accurately analyze and measure the growing risk.
However, some industries, including agriculture and energy, have not been adequately covered by traditional insurance within the hardened market. Descartes’ parametric insurance models hail risks for each client by utilizing advanced technologies and data from the third party agencies in order to face the evolving exposure trends.
Descartes’ innovative data-driven parametric insurance offers better protection for business
Descartes’ parametric hail insurance offer involves modeling the underlying phenomenon directly and integrating different data sources, enhancing the accuracy of pricing and loss expectations for customers and carriers. With our expedited claim assessment and pay-out process, our parametric solution can help businesses build resilience and bounce back from damaging hail events.
Fill out the form to download our white paper and learn about the evolution of the hail risk and how Descartes’ parametric insurance offers an alternative solution to better protect corporate clients.
