ITI: Why is now an exciting time to be a rising insurtech?

Tanguy: Climate risks around the world have never been more present. From Hurricane Ida to the floods in Germany and China, as well as wildfires along the US west coast, recent examples stress the need for more resilience for populations and economies, and the opportunity for next generation insurance products like Descartes’ parametrics.

Did you know Descartes was featured as part of our Future50 Europe. See the other the 49 insurtech unicorns of the future here.

The boom in available data is also playing a determining role in allowing new entrants in the insurance market. Most barriers to entry have disappeared. Thanks to new data sources, satellite imagery and IoT, you are no longer required to have historical data to be able to assess natural risks. Ten years ago, incumbents had a competitive advantage from having collected their own data; some of them for more than a century. This is not the case today. New players with superior quantitative and coding skills can be better armed than incumbents to address corporates’ new and emerging risks.

In addition, we are convinced that AI and advanced analytics will enable insurers to pass on more benefits to clients. As risk assessment becomes more accurate, insurers will be able to offer more competitive rates and to cover risks that were previously considered uninsurable. Parametric insurance leverages new technologies, such as image recognition and machine learning to close the protection gap and improve how we cover our customers’ risks.

ITI: If you could meet yourself on the day you started your business, what would you tell yourself?

Tanguy: Building the right team is critical. Thankfully I believed that on day one at Descartes, but it is worth repeating. We strongly value learning and analytical skills, but even more importantly we strive to surround ourselves with committed and motivated people who share our convictions.

Today’s businesses and projects cannot be just about finding a market and selling products. Our society and planet call for greater causes and serving a purpose is paramount to driving momentum and talent.

ITI: What problem did you see in the market that led you to create Descartes Underwriting?

Tanguy: We saw a gap between the traditional insurance approach and the risk exposure needs of corporations and governments against extreme weather and climate change. 

Descartes was born out of the conviction that climate change calls for a revolutionary approach in insurance to better protect corporate and public sector clients. Our founders and team also believe strongly that new technologies can deeply transform the insurance industry, reducing friction and restoring trust in the market. 

In our view, corporate insurance is going through an existential crisis. The on-going pandemic only emphasizes the shortfalls plaguing the sector, and therefore the opportunity for parametric solutions such as those offered by Descartes.