What:
The partnership aims to galvanize the availability and advancement of parametric cyclone insurance products by combining Descartes’ ability to incorporate technology into its parametric product design with Reask’s wind speed data.
Why:
Wind storms are a threat to businesses, communities, and public entities, with cyclone-driven economic loss reaching USD 78 billion worldwide and 68% of losses (USD 53 billion) not covered by insurance; last year alone. This partnership will address the insurance protection gap by expanding global cyclone parametric coverage.
How:
- The consistent global coverage of Reask’s tropical cyclone product, Metryc, enables the expansion of parametric insurance policies into regions and geographies where data limitations impeded previous coverage.
- Reask’s ability to augment scarcely available ground-level observations and deliver high-resolution wind hazard intensity metrics within days following an event supports the deployment of Descartes’ parametric products.
- Descartes Underwriting has worked in collaboration with Generali Global Corporate & Commercial since 2020 to improve corporate uptake of parametric risk transfer solutions globally.
- As Nat Cat & extreme weather risks evolve due to climate change, the inherent difficulties in obtaining accurate data due to the destructive nature of cyclone activity are also likely to be accentuated.
- The partnership between Descartes Underwriting and Reask addresses these challenges as the scientific teams at both organizations collaborate and apply machine learning to improve tropical cyclone wind field and terrain interaction models.