Parametric insurance has become a leading tool to increase resilience to extreme cold events.
In the past decade, countries in the Northern Hemisphere have experienced a series of extreme cold events that have caused severe damage to infrastructure, disrupted supply chains, destroyed agricultural crops and landscaping, and damaged private property. These events have been particularly devastating, as some of the affected regions were ill-prepared for prolonged periods of freezing weather.
Instances of extreme cold are typically caused by a disrupted polar vortex, which sends cold air from the Arctic to lower latitudes. The insurability of these events is a challenge, as the non-physical damage that occurs during or after extreme cold events is often not covered by traditional insurance policies. As a result, parametric insurance has become a leading alternative to protect commercial and public entity clients against extreme cold exposures.
Descartes collaborates with brokers around the world to insure utility providers, supply chains, construction, agriculture, and critical infrastructure against extreme temperature exposure, through a unique data driven approach.
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