Does insurance cover hurricane damage for corporates in the US? Parametric insurance offers capacity and a transparent solution against commercial exposure.

As the climate risk landscape continues to evolve, coastal assets are highly susceptible to hurricanes.

At the global level, tropical cyclones have been the costliest natural disaster in terms of material damage and economic losses in the last two decades, where 2022 saw $56 billion in insured losses due to named windstorms alone.In the same timeframe, approximately 40 percent of cyclone-driven cumulative losses were the result of only five Atlantic Hurricanes: Katrina (2005), Ian (2022), Irma (2017), Ida (2021), and Sandy (2012). 

The costliest natural catastrophe globally in 2022 was Hurricane Ian, estimated to be between $50-55 in insured losses and over $95.5 billion in total economic loss, meaning nearly 55% of damages were left uncovered. Second only to Hurricane Katrina in terms of aggregate losses, the deadly storm caused widespread damage across the southeast United States, and the region and the global (re)insurance industry is still coping with the aftermath. 

Season after season, the rising sum of insured losses is putting increased pressure on the prices and capacities available for corporate insurance programs. As budgets and market capacity tighten, pressure is mounting on corporate and public sector clients to spend premium dollars as flexibly and effectively as possible. Parametric risk transfer solutions offer access to new sources of capacity worldwide, delivering transparent terms and prompt payouts when companies need it the most.

Now more than ever, continuously developing techniques and diverse data sources enable all elements of a windstorm to be captured in a precise manner. Descartes’ parametric hurricane cover is custom designed and structured as a ‘Cat-in-a-Circle’ or ‘Wind Speed at location’ product depending on the client’s specific needs, budget, risk appetite, and asset location(s).

Find commercial protection ahead of hurricane season – Descartes’ parametric insurance offers windstorm capacity and risk transfer solutions for exposed corporates.

Want to find out more? Fill out the form to download our latest Hurricane factsheet.