The Demex Group, a noteworthy provider of comprehensive solutions for modelling, assessing, and managing climate-linked risks at scale, has announced the launch of new snowfall insurance products.
Revenue and operating costs in snow-sensitive businesses are experiencing unexpected volatility driven by the changing nature of winter storms.
Demex snow insurance hopes to deliver climate resilience by addressing volatility and stabilizing operational budgets that are linked to snowfall.
Carlos A. Oliveras, Head of Insurance at Demex, stated, “Unpredictable volatility creates significant challenges for commercial property owners, facilities managers, municipalities, and snow removal contractors alike.”
“These businesses are particularly vulnerable. Winters with unexpectedly heavy snowfall boost cost for some and years with little snow destroy revenue for others. Snow insurance serves as a shock absorber for snow-sensitive businesses.”
The snowfall Insurance has two unique functions. The first is the Demex Revenue Protection Insurance, which is created specifically for snow removal contractors and snow-dependent businesses. The claims are triggered when snowfall is extremely low.
Demex Cost Control Insurance is the second function, serving property owners, facility managers, and municipalities. These claims are triggered when snowfall is extremely high.
These are parametric insurance products, where the amount of snow, or lack of it, will be reported and used as an input to trigger the contracted coverage.
Both policies are backed by non-admitted paper from Evanston Insurance Company, a subsidiary of Markel, the leader in speciality insurance. Policies carry an A XV rating from AM Best, the largest credit rating agency in the world specializing in the insurance industry.
