Revolutionizing Flood Insurance: Previsico and Descartes Leverage IoT Sensors and Parametric Solutions
In a groundbreaking development for flood risk management, Previsico has joined forces with Descartes Underwriting to provide businesses across the UK and Ireland with enhanced flood warning systems and expedited claims payments. This collaboration leverages advanced technologies and insurance solutions to address the rising threat of flooding, making it crucial for organizations to stay prepared.
Understanding the Partnership’s Impact
The partnership between Previsico and Descartes comes in response to the increasing flood risks anticipated in the UK. Studies suggest that by 2050, under a 2°C warming scenario, the number of individuals at risk could rise by 61%, escalating to 118% with a 4°C increase. This alarming trend has already begun to affect the insurance market, leading to difficulties in obtaining affordable flood coverage.
How the Collaboration Works
- Parametric Insurance Solutions: Descartes provides innovative parametric insurance policies that cover both tangible and intangible losses, with the potential to underwrite up to $70 million per policy.
- Advanced Flood Forecasting: Previsico’s Flood Intel Platform offers real-time data on flood risks, delivering forecasts for surface water and watercourse flooding up to 48 hours in advance.
- IoT Flood Sensors: Previsico’s sensors continuously monitor local conditions, providing businesses with immediate insights into potential flood threats.
This combination of real-time data and insurance solutions aims to empower organizations to proactively manage flood risks and protect their assets effectively.
Benefits for Businesses
The collaboration is particularly beneficial for businesses located in flood-prone areas. Some key advantages include:
- Timely Financial Support: Descartes’ parametric insurance ensures rapid claims processing, typically within days of a flood event.
- Enhanced Risk Management: The partnership allows businesses to take preemptive measures against potential flooding, significantly reducing financial impacts.
- Increased Resilience: By integrating advanced flood forecasting and insurance solutions, organizations can improve their resilience against extreme weather events.
Expert Insights
Steven Hayward, IoT Systems Manager at Previsico, emphasized the importance of this partnership, stating, “With a significant portion of commercial properties in the UK at risk from flooding, our collaboration with Descartes is a game-changer.”
Alessandro Girelli, Underwriting Director at Descartes, noted the streamlined approach to managing corporate flood risk. “We combine real-time data from Previsico’s sensors and public river gauges to ensure claims payments are effective and timely,” he explained.
Conclusion
The partnership between Previsico and Descartes Underwriting represents a significant advancement in flood risk management for businesses in the UK and Ireland. With the increasing threat of climate change and its associated flood risks, this collaboration provides an essential tool for organizations to safeguard their properties and operations. For more information about flood risk management and insurance solutions, visit Previsico’s website or Descartes Underwriting’s site.
