Descartes Underwriting teams with OAK Global to deliver parametric solutions via Lloyd’s

Descartes Underwriting, the parametric risk transfer specialist, and OAK Global, the specialist Lloyd’s underwriting company, has announced Descartes’ approval as a Coverholder at Lloyd’s, which will see the firm underwrite parametric policies through OAK Global’s Syndicate 2843, bringing new risks to the London market.

As a Lloyd’s Coverholder, Descartes will now gain direct access to the Lloyd’s underwriting capacity, enabling its growth into new strategic markets, particularly the High-Net-Worth individual segment in the United States, which seeks innovative solutions much like parametric, for insuring against natural disaster events.

Additionally, Descartes will also obtain the ability to allocate more capital towards significant and appealing risks that necessitate substantial capacity, such as data centres, which continues to gain rapid momentum across both the re/insurance and insurance-linked securities (ILS) sectors.

“This designation represents a major achievement for Descartes, as it demonstrates the confidence of OAK Global and Lloyd’s as a whole in our underwriting expertise, governance framework, and operational capabilities,” commented Tanguy Touffut, Co-founder and CEO of Descartes Underwriting.

“In an increasingly volatile, fragmented, and complex world, Descartes is leveraging innovation in all its forms to deliver relevant coverage solutions to brokers and policyholders. We are delighted and grateful to join the world’s oldest insurance market by establishing a strategic partnership with OAK Global. This partnership will complement our existing portfolio of insurers and reinsurers and open up access to promising new markets,” Touffut continued.

Meanwhile, OAK Global emphasised that this collaboration brings together two businesses that share a scientific, data‑led view of risk that enables underwriting with a precision that indemnity-based models typically struggle to achieve.

Leveraging Descartes’ proprietary technology and physical models, OAK Global aims to enhance its portfolio by employing transparent, data-driven risk selection and comprehensive analysis.

“Descartes is exactly the type of partner we set out to work with – scientific, rigorous and deeply committed to technology‑led underwriting. From our first meeting, it was clear we share an ambition to develop innovative parametric solutions that close protection gaps for climate‑driven perils in markets the wider industry finds difficult to serve,” said Cathal Carr, Founder and CEO of OAK Global.

Adding: “Through our recently launched strategic business unit, OAK Horizon, which underwrites risks at the intersection of climate and technology, this partnership opens the door to transactions that support developing economies, food security and public‑private partnerships.”