Descartes confirms new credit and political risk offering

By Henry Gale

July 10 - (The Insurer) - Parametric insurance specialist Descartes Underwriting has confirmed its entry into the credit and political risk insurance market, describing it as a "major diversification" for its full-stack insurer.

The new product covers political risks affecting foreign investments and counterparty credit risks. It covers individual transactions for their entire duration under a single contract.

Descartes said it had already issued its first policies to clients in France through its full-stack insurer Descartes Insurance.

Parametric Insurer reported last month that Descartes Insurance had received regulatory authorisation to underwrite credit insurance.

Descartes has also hired Hélène Martin, most recently Coface's head of single risk, credit and political risk for France. It had added Coface's Benjamin Lambert in September as senior underwriting manager for credit and political risks.

Kevin Dedieu, CEO of Descartes Insurance, said: "Given the growing impact of political and credit risks in our changing world, it provides timely support for brokers and their corporate clients, complementing the recent launch of our cyber and technical risk insurance offering, and our parametric products."

Lambert said the new credit and political risk offering is underpinned by Descartes' tailor-made approach to products and would benefit from complementarities with the company's expertise in climate.

Descartes Underwriting was founded in 2018 as an MGA with a focus on underwriting natural catastrophe and weather risks for corporate clients. In 2023, the firm launched its first cyber product, underwritten through Descartes Insurance, as it looked to extend corporate parametric solutions to other risk classes.

Descartes Insurance underwrites risks in the European Economic Area and wrote 16.6 million euros ($18.9 million) of gross premiums in 2024. Descartes said in February that the group, including the insurer and its MGA arm, wrote more than $200 million last year.