As tornado risk continues to evolve, corporates require alternative insurance for financial security & capacity
Off to a turbulent start, the 2023 tornado season has already seen 496 confirmed events within the United States as of April 26. This year, as in others, tornadoes have taken a massive toll on life and property, with the peak risk period continuing through June.
The losses from a devastating Mississippi tornado earlier this year were estimated to come in at around $100 million USD. In March tornadoes produced a mix of large hail, heavy rain and strong winds that left many businesses with extreme losses to high-value assets.
Challenges and solutions for exposed corporates
Consequently, following years of severe convective storm activity, traditional insurers are reducing or excluding wind coverage altogether. This is creating a challenging environment for corporates in need of tornado cover.
On the other hand, loss prevention is exceptionally challenging as tornadoes can occur in a matter of minutes. The Great Plains of the central United States is often referred to as ‘Tornado Alley’. It represents an ideal environment for the formation of severe thunderstorms, as well as a region ideal for many corporations to run their operations. Industries like the renewable, manufacturing or construction industry in this hot spot in the United States are vulnerable to significant losses due to such high-value assets.
Solar panels, buildings and infrastructure are highly exposed to tornadoes and are major contributors to extreme financial loss, so ensuring protection for corporate assets is vital. This is where parametric insurance solutions can meet the challenge in filling the gap left by the traditional market.
Descartes Underwriting’s parametric insurance solution
Descartes’ bespoke and customizable parametric insurance covers covers offer an alternative solution to all industries with high-value assets exposed to tornadoes and deliver transparent terms and swift liquidity when corporates need them most.
Check out our factsheet to learn how parametric insurance can provide unparalleled tornado protection for valuable assets.
