Australian-inspired flood insurance product deployed in the US
Descartes has announced the launch of its Flood-at-Location policy in the United States, following its proven success in Australia.
The solution was originally developed in response to catastrophic flood events that have impacted Queensland and NSW and offers a cost-effective solution for flood risk. Using precise, no-contact sensors installed on-site to measure flood depth in real time, Flood-at-Location enables fast, transparent payouts, which helps clients recover quickly and stay resilient.
Like Australia, the US has been affected by significant flooding – just last year, heavy rainfall from Hurricane Helene led to the overflowing of many rivers and streams in the country’s east, causing severe business interruptions.
Descartes’ fully customisable Flood-at-Location policy, backed by extensive research in flood modelling and advanced sensor systems, upends the traditional approach to flood insurance to deliver better protection for businesses.
In the US, floods are often excluded or sub-limited in regular property policies and a standalone flood coverage may be required. Flood-at-Location from Descartes is a superb supplement to Property All Risks insurance.
The success of Descartes' Flood-at-Location product in Australia – where it has helped high-risk sites strengthen their resilience and mitigate the impact of extreme weather – provided a compelling case study into how it could benefit the US market.
“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 US market,” Daniel Vetter, Head of Americas for Descartes, said.
The Flood-at-Location product covers any economic losses resulting from fluvial, pluvial and coastal flooding. The flood depth is measured precisely by on-site sensors, in real-time, at a client’s location(s). The claim is then assessed based on the flood depth data and the client’s bespoke payout structure, facilitating almost immediate indemnification without the need for adjusters or investigations.
“This market-leading coverage follows intensive research and development conducted by Descartes in-house and with our technology partners,” Kevin Dedieu, Co-founder and Chief Scientific Officer of Descartes, said.
“We developed this product because our brokers shared with us that commercial flood products available at the time did not meet their clients’ needs. We utilised our scientific approach to create this new, highly responsive product which leaves no gaps uninsured.”
About us:
About Descartes
Descartes is a corporate insurance specialist that collaborates with brokers to protect their corporate and public sector clients against climate 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 and strong US presence, Descartes serves a diverse portfolio of clients in more than 60 countries, with 19 offices spread across Europe, Asia-Pacific, Latin & North America.
Descartes is comprised of 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, Eurazeo and Battery. descartesunderwriting.com
Contact details:
Australia: Deb Eccleston – Descartes Communications Correspondent
0422 407 788
Paris: Eric Allombert – Descartes
[email protected]
(+33) 6 89 91 53 73