Descartes expands parametric flood-at-location product to US

By Michael Loney, Henry Gale

June 26 - (The Insurer) - MGA and insurer Descartes Underwriting has launched its parametric flood-depth cover in the U.S. market, offering limits of up to $70 million.

Descartes has offered sensor-triggered flood-at-location coverage in the UK and Ireland since 2023.

The company said the new commercial insurance product covers any economic losses resulting from fluvial, pluvial and coastal flooding.

The flood depth is measured in real time by on-site sensors. The claim is then assessed based on the flood-depth data and the client’s bespoke payout structure, facilitating indemnification without the need for adjusters or investigations.

Descartes said that payment is usually received by the insured within days.

Coverage is offered for one or more locations, and with flexible durations to match project lengths or client preferences, including multiple years. Any economic loss sustained is insured, including property damage, business interruption and extra expenses, with no direct physical damage required to trigger a payout.

Policies are available in the surplus lines market in all 50 states.

Descartes highlighted that flood is often excluded or sub-limited in regular property policies and therefore standalone flood coverage may be required.

“For all the reasons that conventional insurance for flood is sometimes unsatisfactory – slow claims payments, exclusions, sub-limits, or a lack of availability – this parametric product will fill the existing gap we’re seeing in the market,” said Daniel Vetter, head of Americas for Descartes.