Descartes Underwriting, an MGA focused on climate risk insurance products, has announced the launch of Descartes Insurance, a full-stack insurer licensed to underwrite risk by the French Regulator (ACPR).
Backed by a panel of A-rated risk carriers, Descartes Insurance is now able to issue policies directly to mid-market clients in France, with plans to expand to other countries in the European Economic Area (EEA) over the course of 2023.
Descartes explained that the new entity will be able to provide cover and fresh capacity to a wider range of clients, but assured that for corporate clients and their existing portfolios, it will also continue to operate as a Managing General Agent in full continuation with its partners.
The company added the the move will enable it to become “more tightly aligned and responsive to customer needs” through a shortened value chain, while increasing the flexibility of Descartes’ suite of products and services.
These may now be expanded to include additional exposures, emerging risks, and product lines that create seamless insurance solutions issued alongside Descartes’ proven parametric structures.
“This is a huge step forward for Descartes but it also marks the evolution of the insurance sector and the way we protect customers,” said Tanguy Touffut, Descartes Underwriting’s CEO and Descartes Insurance’s non-executive chairman. “We seek to represent the next generation of risk transfer markets backed by industry leaders. By combining innovative insurance structures, powerful technology, and our own risk capital, we protect clients against the full spectrum of climate and emerging risks with unparalleled efficiency.”
Sébastien Piguet, Descartes Underwriting’s Chief Underwriting Officer, will serve as CEO of Descartes Insurance. In parallel, Kevin Dedieu, Descartes Underwriting’s Chief R&D Officer, will take the role of Deputy CEO of Descartes Insurance. Together, they commented: “We are deeply honored and look forward to leading Descartes Insurance together.”
Piguet continued, “It is my firm belief that Descartes Insurance has all the resources needed to thrive in these challenging times, be it hard market conditions, the impact of climate change or the transition towards a net-zero economy. I am elated to start this new journey as a full-stack risk carrier with the support of Descartes Group’s incredible team.”
Kevin Dedieu added that he “view’s the launch of Descartes Insurance as the logical next step given the continued investment in our scientific team, technology and R&D to revolutionize the entire insurance process, from risk assessment to claims payment.”
Joining Descartes Insurance as an Independent Board Member, Philippe Rocard shared his outlook on the direction of the new entity: “The parametric approach has opened a new frontier for insurance. And Descartes Underwriting is a front runner in this new world. It has developed impressive mathematical and physical knowledge to help corporations protect themselves against many perils including climate change. I am thrilled to be a member of this collective adventure.”
Rocard has led multiple insurance companies in France and abroad as CEO, notably within the AXA Group. He has also served as a member of numerous Boards of Directors over the past three decades.
Descartes Chief Operating Officer, Violaine Raybaud, concluded: “Since our creation, Descartes’ innovative edge stems from our ability to handle new data sources and extract value for our brokers and clients. We regard this milestone as a momentous opportunity to further infuse technology and Descartes’ science-driven, client-first approach within the core of our insurance operations.”
