Previsico has partnered with Descartes Underwriting to offer businesses in the UK and Ireland advanced flood warnings and swift claims payments.
This will be made possible by combining Descartes’ parametric insurance policies with Previsico’s IoT flood sensors.
The partnership stems from the increasing risks associated with flooding in the UK, which are projected to rise significantly by 2050.
Under a 2°C warming scenario, the number of people at risk is expected to increase by 61%, and by 118% at 4°C.
This surge in flood risk has already affected insurers’ risk appetite, making affordable flood insurance harder to acquire.
By partnering, Previsico and Descartes aim to help businesses better manage their flood risk and respond quickly to financial losses caused by floods.
Previsico offers world-leading flood forecasting and sensor technologies through its Flood Intel Platform.
This platform helps organisations manage flood risks by providing detailed forecasts of surface water and ordinary watercourse flooding up to 48 hours in advance. Previsico’s sensors continuously monitor local conditions, including water levels, to offer businesses real-time insights into potential flood risks.
Their solution empowers organisations to take proactive steps in mitigating flood damage and protecting their assets.
Descartes is a prominent provider of parametric insurance coverage, offering highly responsive, efficient solutions for major corporate clients.
The company’s parametric insurance policies provide coverage for both tangible and intangible losses, with the capacity to underwrite up to $70m per policy.
Descartes prides itself on its ability to process claims swiftly, typically within days of a flood event, ensuring that businesses receive timely financial support. With A+ rated financial security, Descartes offers businesses robust coverage options, designed to manage corporate risks effectively.
This partnership leverages Previsico’s advanced flood warning system and Descartes’ parametric insurance policies to offer businesses a seamless risk management solution.
By combining real-time data from Previsico’s IoT flood sensors with Descartes’ parametric insurance capabilities, the companies aim to provide a more efficient, transparent, and responsive approach to flood risk management.
The partnership also addresses the pressing issue of flood exposure in the UK, enabling businesses to take action before a flood event occurs, potentially reducing financial impacts significantly.
Previsico’s technology and Descartes’ insurance solutions are particularly relevant for businesses in flood-prone areas.
With the increasing threat of climate change, which exacerbates flood risks, the collaboration offers businesses a powerful tool for safeguarding their properties and operations. The partnership aims to support flood risk mitigation efforts and increase resilience in the face of extreme weather events.
Steven Hayward, IoT Systems Manager at Previsico, said: “Today, a third of commercial properties in the UK are at risk from flooding and it is estimated that 40% of small and medium-sized businesses never reopen after they experience losses from a significant flood event.”
“Our partnership with Descartes is a game-changer. It will provide businesses with our advanced flood warnings and ensure more organisations can potentially receive parametric insurance payments should the worst occur, enabling them to survive the financial impact of flooding.”
Alessandro Girelli, Underwriting Director, UK & Ireland, at Descartes, added: “Working with Previsico, we’re able to manage corporate flood risk in a simple, transparent and speedy way. We combine real-time data from Previsico’s sensors and public river gauges to underpin claims payments with a bespoke payout structure increasing with the severity of the flood. The arrangement enables us to support flood risk mitigation, with Previsico’s flood forecasts helping companies take action before floodwaters enter their premises.”
Vania Hernandez Bello, Innovation Project Manager at Descartes, said: “With increasingly problematic flood exposures in the UK and our commitment to helping clients become more resilient, partnering with a reliable local expert was essential. Collaborating with Previsico and their advanced flood sensor technology has been instrumental in enhancing our insurance product by enabling more accurate flood level detection.”
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