Protect against the unpredictable this summer
Even if there is still a lot of uncertainty for the next season, long-range weather forecasts are predicting another summer of storms and cyclones ahead, with the Bureau of Meteorology predicting 11 tropical cyclones in the Australia region, four making landfall.
And while this is considered an average tropical cyclone season, it’s the severity and impact on the economy that has experts concerned.
According to the Insurance Catastrophe Resilience Report 2023–24 last year’s “catastrophic season”, was marked by four major weather events that collectively led to almost 157,000 claims and $2.2 billion in insured losses.
Which begs the question – what’s in store in 2024?
If Australia’s State of the Climate 2024 report released by the Bureau of Meteorology and CSIRO provides any indication, we need to be prepared for more extreme weather given the changing nature of climate risk “now and in the decades ahead”.
Drawing on the latest national and international climate research, the report shows an increase in extreme heat events, an increase in extreme fire weather and an increase in the intensity of heavy rainfall events in Australia.
The findings come as no surprise to Lynn Roehrig, Descartes Underwriting Head of Business Development, Australia and New Zealand.
“Natural disasters and extreme weather events are increasing drastically in terms of frequency and severity due to the effects of climate change,” Lynn said.
“The volatility of these climate risks forces traditional insurers to apply coverage restrictions such as deductibles, sub-limits and policy exclusions.”
While traditional insurers assess the risk based on historical data and loss history, Descartes develops unparalleled risk understanding by modelling the underlying phenomena.
“This traditional approach is losing relevance in a changing risk landscape with increased volatility,” Lynn said.
“Our deep understanding of climate risks enables us to provide fresh capacity in exposed areas, with fair and accurate pricing based on our proprietary models,” added Kevin Dedieu, Descartes co-founder and Chief Scientific Officer.
Descartes parametric insurance combines scientific and technological expertise with a parametric approach, which not only builds clients’ resilience but provides certainty and visibility thanks to swift indemnification processes.
“Our models help us envision the exact nature of each peril by capturing the underlying phenomenon, trends and climate change impacts directly, meaning we can assess clients’ vulnerability with a forward-looking perspective,” said Kevin.
Last year, less than 40% of global economic losses resulting from extreme weather events were insured. In an environment where there’s little or no warning of the severity of events, how can businesses take appropriate measures to protect their assets?
The answer lies in the data, according to Lynn.
“We use innovative sources of data – e.g. satellite imagery, loT, stationary sensors, radar – from which we can derive crucial insights into the dynamics of natural disasters and better protect our corporate clients,” he said.
About us:
About Descartes
Descartes is a global corporate insurer that collaborates with brokers to protect their corporate and public sector clients against climate, cyber and other emerging risks. At the forefront of AI and Data analysis, Descartes utilises cutting-edge technology combined with a new generation of data sources, to model, assess and manage risks.
Offering a full range of insurance products, including cost-effective and fully transparent parametric solutions with predefined and swift claims payouts, Descartes has already provided over $10 billion capacity to its clients through corporate brokers.
With a global footprint, Descartes serves a diverse portfolio of clients in more than 60 countries, with 17 offices spread across Europe, Asia-Pacific, Latin and North America.
The Descartes group comprises Descartes Insurance, a full-stack insurer operating in several European countries, and Descartes Underwriting, a global MGA backed by a panel of tier-one risk carriers. The company has been financed with over $141M by investors including Highland Europe, BlackFin, Serena, Cathay and Eurazeo. descartesunderwriting.com
Contact details:
Media contacts
Brisbane: Deb Eccleston – Descartes Communications Correspondent
0422 407 788
Paris: Eric Allombert – Descartes
pressrelations@descartesunderwriting.com
(+33) 6 89 91 53 73