Independent parametric-specialised firm Descartes Underwriting has partnered with ICEYE to develop parametric insurance product design in combination with the latter’s observation technology and flood hazard data.
Flood risk is a significant emerging risk driven by climate change that is increasingly difficult to model and insure, requiring detailed and accurate assessment and data coverage in high-risk areas.
The collaboration aims to address the challenges in pricing and claims processing that arise from data loss and inaccuracies in flood events, as physical gauges and sensors are vulnerable to damage.
Under the partnership, ICEYE will incorporate its innovative synthetic-aperture radar (SAR) flood data and monitoring capabilities into Descartes’ parametric insurance solutions.
Using ICEYE’s multi-source insights on flood risk from SAR data and measurements from auxiliary sources, Descartes will have the ability to construct precise parametric triggers for its global corporate and public client base, as well as make efficient claims payments based on specific client locations.
Sebastian Piguet, co-founder and head of underwriting at Descartes Underwriting, comments: “We consider access to accurate data, provided by an independent third-party, to be a prerequisite for all parametric insurance contracts. We are thus delighted to partner with ICEYE to advance the frontier of parametric flood insurance and expand our offering to a wider geographic client-base based on ICEYE’s data.”
Lisa Wardlaw, global head of insurance solutions at ICEYE, adds: “The climate crisis calls for a revolutionary approach to insurance that fuses science, data and finance. We are proud to partner with Descartes, a company that shares our commitment to innovation.”
“Our unique global flood monitoring solutions consistently provide data on whether a given parameter has been met or exceeded at any location worldwide. By reporting on such activity quickly and effectively, ICEYE is enabling flood monitoring that has been impossible until now.”
