Heightened vulnerability in the wake of intensified tornado risk
Severe thunderstorms and the resulting hazards of damaging winds and tornadoes cause billions of dollars of damage and heavy losses each year—increasing the demand for parametric tornado insurance. Weather trends in the US depict an increase in tornado activity throughout the Southeast as well as the southern part of the Midwest, and with tornadoes clustering on fewer days in the year, the number of days with multiple events have become increasingly common.
Following years of severe convective storm activity, premiums for most property insurance programs have dramatically increased, rising at a faster rate than inflation. As market conditions continue to harden, commercial insurers are increasing deductibles, reducing wind capacity, or exiting industry segments altogether.
Get back to business faster with Descartes’ parametric tornado insurance
As tornado risk intensifies, outbreaks are both extremely dangerous and exceptionally challenging to specifically and effectively address with existing market solutions. Parametric tornado insurance can alleviate the pain left by commercial insurers, providing liquidity immediately following a severe event, with a claims process that allows you to receive swift payment and get back to business faster.
Fill out the form to download our latest Tornado Spotlight. Get an overview of Descartes’ parametric tornado insurance in action, with a case study example of a manufacturing client in the wake of an April 2020 tornado outbreak.