The Demex Group, a provider of comprehensive solutions for modelling, assessing and managing climate-linked risks at scale, has launched snowfall insurance.
Revenue and operating costs in snow-sensitive businesses are experiencing unexpected volatility driven by the changing nature of winter storms, according to Demex.
Demex snow insurance delivers climate resilience by addressing volatility stabilising operational budgets that are linked to snowfall.
Its functions include Demex Revenue Protection Insurance — which is created for snow removal contractors and snow-dependent businesses. Claims are triggered when snowfall is extremely low.
The second function is Demex Cost Control Insurance — which serves property owners, facility managers and municipalities. Claims are triggered when snowfall is extremely high.?
Both policies are backed by a non-admitted paper from Evanston Insurance Company, a subsidiary of Markel.
Policies carry an A XV rating from AM Best, the largest credit rating agency in the world specialising in the insurance industry.
Commenting on the launch, head of insurance at Demex Carlos Oliveras says: "Unpredictable volatility creates significant challenges for commercial property owners, facilities managers, municipalities, and snow removal contractors alike.
"These businesses are particularly vulnerable. Winters with unexpectedly heavy snowfall boost cost for some and years with little snow destroy revenue for others. Snow insurance serves as a shock absorber for snow-sensitive businesses."
