Descartes & Reask partner to expand parametric cyclone covers

Descartes Underwriting, the insurance technology (insurtech) focused managing general agency (MGA) that specialises in parametric and data-driven risk transfer products, is partnering with Reask, a climate analytics and data company that uses machine learning techniques.

The partnership is focusing on tropical cyclone risk transfer, with the pair hoping to “push the frontier of parametric windstorm insurance through advanced machine learning models.”

The goal is to expand Descartes underwriting footprint for writing tropical cyclone, hurricane and typhoon covers around the world, using Reask’s advanced modelling and analytics.

“The consistent global coverage of Reask’s tropical cyclone product, Metryc, enables the expansion of parametric insurance policies into regions and geographies where data limitations impeded previous coverage,” the company’s explained.

This is expected to help narrow protection gaps around the world, making parametric cyclone insurance covers more widely available.

Reask data will also be used to augment parametric product delivery with ground-level observations and through the delivery of high-resolution wind hazard intensity metrics within days following an event greatly, which is expected to be supportive of further deployment of Descartes’ parametric products.

Kevin Dedieu, Co-founder & Head of R&D at Descartes Underwriting, commented, “Data dearth in certain regions remains a gating factor to providing parametric insurance covers that enhance resilience. Reask leads the charge in its ability to quickly capture a windstorm event or provide wind at location maps in certain areas, such as the South Pacific, where data is less accessible.

“Precise, high quality data is a prerequisite to all parametric insurance structures. Wind-at-location data, such as that provided by Reask, amplifies customization and reduces basis risk in game changing ways that serve to benefit parametric insurance providers, brokers, reinsurers, and risk managers for public entities and private sector clients worldwide.”

Thomas Loridan, Co-founder and CEO at Reask, added, “Our Metryc solution enables the transfer of financial risk in all corners of the globe, expanding the reach of parametric insurance solutions such as those provided by Descartes Underwriting.

“It is thanks to our machine learning approach to wind modelling that Metryc can be used as a reliable third-party view of tropical cyclone wind speed data even in regions where observations are scarce.”

Also read:

Descartes raises $120m Series B, plans for parametric growth.

Reask gets Tencent backing for its AI catastrophe models.