Wildfires have emerged as formidable threats to global business continuity, hitting hard on operations and financial stability, particularly in wildfire-prone regions across the globe. In 2024, wildfires resulted in $6 billion in global economic losses and $3 billion in insured losses. In the first quarter of 2025, the California wildfires accounted for 71% of total insured losses—amounting to approximately $38 billion. Such events highlight the need for robust risk management strategies to prevent significant business disruptions and financial losses due to wildfires.
The impact of wildfires extends beyond immediate physical damage, affecting non-damage business operations as well. The hospitality industry, for instance, faces direct threats to property as well as the risk of decreased tourism in the case of wildfire affecting surrounding areas of the insured location.
With increasing wildfire incidents causing significant economic losses, it’s crucial to understand how parametric wildfire insurance can play a vital role in your risk management strategy. Our Fire-in-a-Circle solution is designed to meet the unique needs of a variety of industries and high-value property owners looking to safeguard their assets, providing reliable, customized coverage.
How it Works
- Satellite imagery is used to assess burned areas within and around a predefined radius.
- If the burned area meets or exceeds the predefined threshold, the policy is triggered.
- Upon receipt of the event report and the declaration of loss, a full payout is issued.
- Clients typically receive payment within a matter of weeks.

Why Choose Descartes’ Parametric Wildfire Insurance?
- Precise Data: Ultra high-resolution imagery allows us to detect even highly localized fires and pinpoint burned areas with exceptional precision.
- Swift Indemnification: After a threshold is triggered and a declaration of loss statement is received, a rapid payout is made.
- Scalable Flexibility: Our solution is fully scalable and does not require any on-site visits.
Want To Learn More?
Download our product sheet (PDF) to:
- Learn more about our affordable and flexible area-based parametric wildfire insurance, covered industries and quote requirements.
- View an example of the payout structure in action.
- Find answers to the most frequently asked questions.
