Marinas at the forefront of weather risks
Along with other high value shoreline assets, marinas face increasing exposure to:
Cyclones, typhoons and hurricanes
Wave damage
Meanwhile, the hardening of traditional insurance markets pose more restrictions for the sector, with reduced capacities, rising pricing & expanded exclusionary wordings.
Our Cat-in-a-Circle cyclone insurance provides a simple & transparent solution to cyclone risks:
Payouts are triggered when the cyclone track passes within a predefined distance from the insured location(s)
Each structure is tailor-made, taking into account client-specific attributes & risk appetite
Rising storm surges put marinas at risk, calling for parametric typhoon insurance
As a result of global warming, changes in Nat Cat occurrence and intensity in the Australasian region are pointing to the need for proper cyclone, hurricane and typhoon insurance. It is reported that heavy precipitation from all weather systems, including tropical cyclones, is expected to rise, and their increased rainfall intensity is an increasing risk to Australia as these storms have historically been associated with major flooding. Furthermore, as a result of climate change, storm surges and excessive sea levels are quite likely to increase in conjunction with tropical storms.
Due to the increasing exposure to cyclones, hurricanes, typhoons and wave damage, marinas, along with other high value shoreline assets, face the devastating consequences of these growing risks. In 2011, for instance, Cyclone Yasi that hit the Port Hinchinbrook Marina, at the South of Cardwell, Queensland, Australia, caused more than $800 million in damage. Evolving from a Category 3 cyclone to a Category 5 cyclone at tremendous speed, about 60 boats were severely destroyed, among other severe damage.
While the intensity of Nat Cats is ascending with climate change, marinas are increasingly placed in significantly unprotected conditions. The growing proportion of the high intensity storms entailing higher wind speed and heavier rainfall is accelerating the hardening of the insurance market. This results in reduced capacities, rising pricing and expanded exclusionary wordings. In this regard, parametric insurance can play an important role as an innovative risk transfer solution by covering the full spectrum of Nat Cat and climate risks.
Descartes’ parametric insurance covers marinas’ exposure to natural risk
Descartes’ parametric cyclone, hurricane, and typhoon insurance helps marinas build resilience and bounce back rapidly against rising Nat Cat risks. Our data-driven approach not only provides a simple and transparent solution but also allows for a swift pay-out process, which is especially necessary for high value marine properties.
case study example
Case study
February 2, 2011: Cyclone Yasi hit Port Hinchinbrook Marina, just south of Cardwell, Queensland, Australia, as a Category 5 tropical cyclone.
Problem
More than 60 boats were destroyed or severely damaged by 12m waves and 205 km/h winds, leading to $10M losses.
