Parametric solutions for low river water levels across the globe

River dependent industries and transport companies require a reinvention of insurance coverage to support against extreme river level volatility.

Changing precipitation patterns and shrinking glacial water storage are leading to increased pressure on waterway navigability and industrial use. Rivers are vital to global trade, industries, ports, food & bev suppliers, agribusinesses and supply chains. With 90% of products moving around the world through waterways, inevitably, sectors heavily reliant on rivers, changing river water levels can cause severe business interruptions, financial losses and disruptions to transport and supply chains. 

Summer 2022 demonstrated how sensitive main rivers are to droughts or rising water levels. The Mississippi, Yangtze and Rhine rivers all suffered from extreme water scarcity. The Rhine also saw waters drop significantly after prolonged lack of rain, causing transport disruption to cargo ships, vessel brokers and commodity traders. In most cases like this, traditional insurance policies do not cover the resulting critical business interruptions and financial losses.

Parametric risk transfer solutions offer access to new sources of capacity globally. These bespoke and customizable covers provide an alternative solution to all river-dependent industries and deliver transparent terms and swift liquidity when corporates need them most.

Check our product brochure on how parametric insurance protects supply chains & industrial operations from river level volatility.