As capacity tightens across the global traditional market, the protection gap for tornado exposure is widening, forcing corporate clients to compromise their insurance limits or be left uncovered.
2023 saw severe convective storms rack up high losses in the United States alone, where insured losses exceeded $50 billion for the first time on record. What’s more, the year had several notable tornado outbreaks, where the Central Tornado Outbreak that occurred in late March caused $5.7 billion.
As the frequency and severity of tornadoes increases year over year, understanding the vulnerability of businesses’ assets and supply chains is crucial to ensuring business continuity in the face of disaster. Tornadoes are highly concentrated weather systems that can cause devastating physical damage and business interruption. Industries like renewable energy, manufacturing, and healthcare are particularly vulnerable, and require insurance solutions that are tailored to meet their specific needs.
This is where Descartes’ bespoke parametric tornado solution steps in. With predefined payout amounts and trigger thresholds, our products give clients access to liquidity through a swift claims process, and protection for assets not covered adequately by traditional insurance policies.
To help exposed clients like solar farm operators, manufacturers, healthcare providers or public entities understand better how our tornado cover leverages data and the latest scientific research to assess the risk, we have outlined everything there is to know about our innovative solution in our product sheet.
As more companies switch or complement their traditional cover with parametric insurance, understanding what exactly happens in the event of a tornado can be challenging to grasp fully, but we have you covered.
Want to find out more? Check out our tornado product sheet today.
