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Parametric Insurance & Carbon Credit Risk
2021-11-22

Parametric Insurance & Carbon Credit Risk

FACT SHEET: Parametric insurance – covering the forestry industry’s carbon credit exposure to wildfire risk.

 

Burning more often, more intensely, & for longer – wildfires are increasingly impacting the global forestry industry. As demand for forestry assets continuing to steadily rise, wildfire risk represents an increasingly significant exposure. 

In cooperation with your insurance broker, Descartes Underwriting offers a cutting-edge solution to cover your wildfire exposure.

 

As the trends influencing wildfire ignition, intensity & propensity to spread continue to evolve – Forestry Investment, Timber and Pulp & Paper companies are at the forefront of increasing wildfire risk.  At the same time, TIMO’s are vital to the production of Carbon Credits that help to reduce greenhouse gas emissions into the atmosphere. Losing carbon credit inventories is a major additional exposure TIMO’s are facing.

In seeking coverage for this growing exposure, these sectors find traditional solutions fall short due to capacity constraints and market hardening.

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