Group 8
2023-01-11

Deal Spotlight: Tailor-made Tornado Cover for the Tech Industry

For the tech industry, key operational assets now extend well beyond Silicon Valley

As the construction of data center infrastructure and cloud computing facilities continues to expand throughout North America’s ‘Tornado Alley’, so does the tech industry’s tornado exposure. 

Tornadoes appear to be occurring in larger “clusters” in recent years, with about 1,200 annually. While there is a lot of uncertainty surrounding the trends around tornadoes, what is certain is that they can cause catastrophic damage. 

A recent tornado outbreak from the Plains to the Northeast in March 2022 caused thousands of outages and an estimated $1.3 billion in damage; while another outbreak near Winterset, Iowa, was the deadliest in the state in more than a decade. 

The rising intensity of severe convective storm activity is leading many traditional insurers to limit capacity or dramatically increase prices and exclusionary language. This leaves corporates across all industries in need of an alternative solution to protect their assets. 

With fresh capacity and client-customized coverage, parametric products provide corporates an unparalleled insurance solution. 

Corporates in the tech industry opt for parametric insurance against severe convective storm exposure

Download the deal spotlight to learn more about how Descartes protected a technology company from tornado risks by building a bespoke insurance program. 

For the tech industry, key operational assets now extend well beyond Silicon Valley

As the construction of data center infrastructure and cloud computing facilities continues to expand throughout North America’s ‘Tornado Alley’, so does the tech industry’s tornado exposure. 

Tornadoes appear to be occurring in larger “clusters” in recent years, with about 1,200 annually. While there is a lot of uncertainty surrounding the trends around tornadoes, what is certain is that they can cause catastrophic damage. 

A recent tornado outbreak from the Plains to the Northeast in March 2022 caused thousands of outages and an estimated $1.3 billion in damage; while another outbreak near Winterset, Iowa, was the deadliest in the state in more than a decade. 

The rising intensity of severe convective storm activity is leading many traditional insurers to limit capacity or dramatically increase prices and exclusionary language. This leaves corporates across all industries in need of an alternative solution to protect their assets. 

With fresh capacity and client-customized coverage, parametric products provide corporates an unparalleled insurance solution. 

Corporates in the tech industry opt for parametric insurance against severe convective storm exposure

Download the deal spotlight to learn more about how Descartes protected a technology company from tornado risks by building a bespoke insurance program.