Descartes Insurance is licensed as an insurer by the French regulator (ACPR) to mitigate risk and is backed by a panel of A-rated risk carriers, the company explained.
The new full-stack parametric insurer is able to issue policies directly to mid-market customers in France, and Descartes plans to expand this capability to include other countries in the European Economic Area (EEA) during 2023. For global customers, Descartes will continue to act as a general manager agent, so there is no change for them.
“This is a huge step forward for Descartes, but it also marks the evolution of the insurance sector and the way customers are protected,” said Tanguy Touffut, CEO of Descartes Underwriting and non-executive chairman of Descartes Insurance.
“We want to represent the next generation of risk transfer markets backed by industry leaders. By combining innovative insurance structures, powerful technology and our own risk capital, we protect clients from the full spectrum of climate and emerging risks with unparalleled efficiency. Saves,” Toft said.
Sébastien Piguet, Chief Underwriting Officer of Descartes Underwriting, will assume the role of CEO of Descartes Insurance, while Kevin Dediu, Chief R&D Officer of Descartes Underwriting, will step down as Deputy CEO of Descartes Insurance.
Descartes believes the new insurer will be able to provide cover and new efficiencies to a wider range of customers across France to start with and later across Europe. This shortens the value-chain for Descartes customers, as they will directly interface with the firm’s carrier and it will issue their policies. We understand that the new carrier will have its own balance-sheet, as a result of which it will be able to provide an element of leverage to Descartes, as well as support for the carriers.
Source: Latestfinance news