Parametric specialist Descartes exceeded $200 million GWP in 2024

By Henry Gale

Feb 20 - (The Insurer) - Descartes, an MGA and insurer specialising in parametric insurance, grew its gross written premiums to more than $200 million in 2024, the company has announced.

Co-founder and CEO Tanguy Touffut told Parametric Insurer that the company's approach to underwriting is to help its insurance partners bring more appetite to the market for peak and secondary-peril risks.

Founded in 2018 and based in Paris, Descartes Underwriting provides corporate insurance for global weather and natural catastrophe perils as an MGA. In December 2022 it launched full-stack insurer Descartes Insurance, which has a licence in several European countries.

"With the science driving our risk-based pricing, we saw growth across the spectrum of the natural catastrophe perils which we underwrite – over 20 of them, from hurricanes and wildfires to floods, severe storms, earthquakes, and drought," Touffut said.

"Our line size of $70 million and sometimes up to $200 million is also a big appeal – brokers can come to Descartes and get it done in one – as is our global presence. We are now on-risk in more than 60 countries. And of course buyers like the speed that parametric policies pay out, especially when a disaster has hit."

Descartes' parametric insurance policies paid claims to organisations after events including hurricanes Beryl, Helene and Milton last year, as well as Typhoon Yagi, flooding from Storm Boris in Europe and a drought in Malawi.

Touffut added that the firm's parametric cyber product, launched in early 2024 and underwritten through Descartes Insurance, also contributed to its top line.

In January last year, Descartes had said its aims for 2024 included "growth of over 50%, well in excess of 200 million in premium" and predicted that a third of its premiums would come from the United States.

Earlier this month, Descartes was involved in the launch of a new ILS fund focused on parametric risks, along with Generali Global Corporate & Commercial, Twelve Capital and Lumyna Investments.