Descartes Underwriting, a parametric-specialized provider of corporate insurance against nat cat and climate risks, has formed a new partnership with Reask, a tropical-cyclone risk analytics firm.
The collaboration aim to expand parametric cyclone insurance into new locations by combining wind data from Reask with Descartes’ ability to incorporate new technology into parametric insurance product design.
Notably, the firm’s believe that the global coverage of Reask’s tropical cyclone product, Metryc, will enable the expansion of parametric insurance policies into regions and geographies where data limitations impeded previous coverage.
Furthermore, Reask’s ability to augment ground-level observations and deliver high-resolution wind hazard intensity metrics following an event should support 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.
“Data dearth in certain regions remains a gating factor to providing parametric insurance covers that enhance resilience. Reask leads the charge in its ability to quickly capture a windstorm event or provide wind at location maps in certain areas, such as the South Pacific, where data is less accessible,” said evin Dedieu, Co-founder & Head of R&D at Descartes Underwriting.
“Precise, high quality data is a prerequisite to all parametric insurance structures. Wind-at-location data, such as that provided by Reask, amplifies customization and reduces basis risk in game changing ways that serve to benefit parametric insurance providers, brokers, reinsurers, and risk managers for public entities and private sector clients worldwide.”
Thomas Loridan, Co-founder and CEO at Reask, also commented: “Our Metryc solution enables the transfer of financial risk in all corners of the globe, expanding the reach of parametric insurance solutions such as those provided by Descartes Underwriting.”
“Regarding the strength of the Metryc product, he added: “It is thanks to our machine learning approach to wind modelling that Metryc can be used as a reliable third-party view of tropical cyclone wind speed data even in regions where observations are scarce.”