Descartes partners with ICEYE for parametric flood risk transfer

Descartes partners with ICEYE for parametric flood risk transfer

Descartes Underwriting, the insurance coverage innovation (insurtech) focused handling basic firm (MGA) that specialises in data-driven and parametric danger transfer items, has actually revealed a partnership focused on establishing much better parametric flood insurance coverage activates with satellite data company ICEYE.Parametric flood danger, insurance and reinsurance transfer has been available for over a years, but triggers utilized for flood protection have actually ranged from rudimentary, to complex and possibly undependable.
As weve described many times going back as far as 2012, for a flood parametric trigger to be reputable it either needs to involve flood depth sensors in situ where the threat is, or through using satellite and picking up data to measure flood extent and protection, which are most likely still the 2 finest approaches for building parametric triggers for flood threat transfer.
Descartes intends to utilize its tech-focused ability to establish parametric risk transfer products along with ICEYEs satellite obtained flood date, to develop brand-new parametric flood insurance coverage offerings.
Descartes expects that ICEYEs information will allow it to construct exact parametric triggers for a larger worldwide client-base, with quick claims payments made based on exact customer areas within a flood occasion.
ICEYE has a growing constellation of synthetic aperture radar satellites, with its Flood Monitoring Solution providing the insurance and reinsurance market a near real-time flood extent and depth data product, with resolution at the particular structure level, with reports readily available within 24 hours of a flood occasion.
It provides worldwide coverage which Descartes hopes will enable the growth of parametric insurance and threat transfer alternatives into geographies and areas where data constraints hampered previous protection.
Sebastian Piguet, Co-founder & & Head of Underwriting at Descartes Underwriting commented, “We consider access to precise data, supplied by an independent 3rd celebration, to be a requirement for all parametric insurance coverage contracts. We are thus thrilled to partner with ICEYE to advance the frontier of parametric flood insurance and expand our offering to a larger geographical client-base based on ICEYEs information.”
Lisa Wardlaw, Global Head of Insurance Solutions at ICEYE added, “The environment crisis requires an advanced method to insurance that merges science, information and financing. We are proud to partner with Descartes, a business that shares our dedication to development. Our distinct international flood tracking services regularly provide information on whether a provided parameter has been met or surpassed at any place worldwide. By reporting on such activity rapidly and successfully, ICEYE is allowing flood tracking that has actually been difficult up until now.”
This years major flood losses in Europe have driven home the possible expenses of flood disasters, with significant losses being borne by the insurance and reinsurance industry, but also a considerable amount of the financial costs not covered by insurance coverage.
Parametric sets off can allow more responsive flood danger transfer and can likewise assist to narrow the defense space related to flood risks, by enabling house owners and services to cover more of their direct exposure, while the international nature of satellite information can help to make flood insurance coverage available more broadly all over the world.

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