Extreme weather, climate change and innovation in event cancellation insurance

Discover how data-driven, alternative risk transfer products are enabling event organizers to bounce back following climate events

Across the globe, the event management sector is under immense pressure. As the industry still recovers from COVID-19, increased weather volatility and extreme weather events have led to many event cancellations or postponements in recent years. 

Along with pandemic clauses, adverse weather-related business interruptions are often excluded from conventional policies. As climate vulnerability heightens, event organizers are facing increased prices and more restrictive terms & conditions. For instance, a vast majority of the large event cancellations brought on by Hurricane Ian last year were not covered by traditional policies, and thus were excluded from indemnification as part of the projected $52.5 billion USD in insured losses.

Descartes’ unparalleled parametric protection provides immediate relief to the event industry, securing financial liquidity against extreme weather events.

In cooperation with insurance brokers, Descartes delivers tailor-made policy solutions to clients from all forms of the event management landscape. With pre-agreed payouts at predetermined thresholds, our parametric products are designed to provide swift liquidity following a wide range of weather events: cyclone, thunderstorm, heatwave, hailstorm, flooding, and more. Clients can specify their unique policy term length and policies are built to take into account their full desired limit and risk appetite in order to provide comprehensive financial protection.

Want to find out more? Check out our latest deal spotlight to see how one race track event utilized a parametric cover to secure their financial liquidity.