The partnership aims to offer businesses in the UK and Ireland enhanced protection against flood damage through a combination of advanced flood warnings and rapid claims payouts.
Descartes will leverage Previsico’s Flood Intel Platform, which utilizes IoT sensors and sophisticated forecasting models to provide accurate flood warnings up to 48 hours in advance. When these sensors trigger a flood event, Descartes’ parametric insurance policies will automatically initiate rapid claims payments, minimizing the financial impact on affected businesses.
The collaboration comes at a critical time, as the UK and Ireland face increasing flood risks due to climate change. According to the HECC report 2023, the number of people significantly at risk of flooding is projected to increase substantially in the coming decades.
Descartes offers a range of parametric insurance solutions with high coverage limits, unrestricted coverage for various losses, and rapid claims processing, providing businesses with enhanced financial security and peace of mind.
This partnership is expected to play a crucial role in helping businesses in the UK and Ireland better manage and mitigate the risks associated with flooding.
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 by FEMA 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.”