Demex launches modelled-loss trigger aggregate winter storm reinsurance product

The Demex Group, a risk analytics and intelligence company that facilitates climate and catastrophe peril parametric reinsurance protection, has announced the launch of a new modelled-loss trigger winter storm reinsurance product for primary carriers.

The reinsurance product is designed to provide protection in the event of unexpected winter storms, cold temperatures, and heavier than usual snowfall.

Winter storms are a frequent burden on primary carriers, with the majority of losses proving not to be shouldered by their property catastrophe treaties.

This new winter storm reinsurance product is based on Demex’s working-layer, aggregate reinsurance solution for severe convective storm product that was launched a few years ago.

In 2025, Demex increased the capacity available for working-layer aggregate severe convective storm (SCS) reinsurance solution to more than $500 million.

Demex said that its winter storm product “uses a carrier’s ground-up claims data from the past decade and overlays corresponding weather data to develop a sophisticated modeled loss index.”

Reinsurers then offer limit to carriers based on the index to meet their specific risk transfer needs.

Demex believes that “cedent-specific claims data develops an extremely accurate projected loss model,” compared to the use of broader data sets and industry loss and damage calibrated models.

In a similar way to indemnity aggregate reinsurance, once the modeled loss tally exceeds the reinsurance attachment point, carrier’s can begin to draw down on the available reinsurance limit available under their agreement.

“It may seem odd launching a winter storm product in summer, but as JFK said, ‘The time to repair the roof is when the sun is shining.’ We’ve been proactively exploring how to extend our secondary peril reinsurance cover. The scale of insured losses and explicit demand from primary carriers made winter storms a natural target. Having successfully developed and piloted the product, it is now available to all US carriers.” explained Matt Coleman, President, Reinsurance at Demex.

Adding, “Now is the time to protect your earnings and balance sheet from another harsh winter.”

Demex said that, where aggregate indemnity cover is available its SCS reinsurance solution shows that the rate on line can be significantly less for its modelled-loss trigger approach.

Loss cost uncertainty is reduced for the reinsurance capital provider, while the modelled loss index trigger used takes into account carrier’s exposure to socio-economic factors.

“This modeling approach provides reinsurers a pure weather-based risk to price and primary carriers well-tailored coverage,” Demex said.