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.
At Descartes, we deliver tailor-madepolicy solutions to clients from all forms of the event management landscape.
How can this be replicated for your client?
Descartes is proud to consistently collaborate with our broker partners and clients in the market for innovative risk transfer solutions. We work diligently with our broker partners to offer existing and prospective clients competitive and reliable solutions.
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.
case study example
Problem
A majority of an event management company's revenue relied on last-minute ticket sales, which depend entirely on weather conditions in the lead-up and day of the event, particularly in the case of excessive rainfall. Although excess rainfall would affect the race, it would take an extreme amount of rainfall to cause cancellation.
Solution
Our solution was based on a threshold of rainfall accumulation amount which was set by the client. They assessed that in cases where this threshold was exceeded, spectators may be discouraged from attending the event as some of the available tickets leave them standing or sitting outside and exposed to the elements.
The cover was designed on a single trigger - if the threshold quantity of rainfall was exceeded, then the client would be entitled to a full payout.
What's more, a weather station located on the track ensured the transparency and precision of the cover.
Result
Their revenue book was protected against excess rainfall, enabling the client to harmonize their financial projections when adverse weather conditions triggered payout thresholds. Satisfied by the customer service and swift liquidity, the client has remained a loyal policyholder since 2019.