Group 8
2022-02-14

Tornado Insurance: Building Resilience for the Manufacturing Industry

Widening Tornado Alley puts manufacturing sector at risk and heightens demand for parametric tornado insurance 

Climate change is expanding the ‘Tornado Alley’, leaving corporates and public entities increasingly exposed to the growing risk without adequate tornado insurance. Though tornadoes occur all over the US, including Alaska and Hawaii, the Tornado Alley is used to specifically refer to the regions where tornadoes are most frequent. This used to comprise areas from central Texas through the Great Plains of Nebraska and South Dakota, however, recently it is shifting and widening towards the East Coast and into states such as Kentucky, Illinois, Arkansas, Missouri. 

In the light of these trends and regions where tornadoes are prevalent, companies that sit on or are adjacent to the Tornado Alley are exposed to huge amounts of risk in the event of tornadoes. Manufacturing companies, for example, are often very vulnerable in the wake of tornadoes given that they need to curtail production while repairs are made or shut down the operations completely for extended periods of time which can lead to loss of millions of dollars. For instance, a number of top automotive manufacturers and suppliers were among the companies disastrously impacted by the tornadoes that ravaged the Midwest and southern regions of the US in 2021. 

Despite the increasing demand for tornado insurance from US manufacturers, few of existing insurers and market solutions can address their risk exposure. It not only gravely impacts the manufacturing companies themselves, but also leaves the supply chains disrupted and ultimately results in significant losses to the local economy

Descartes’ parametric insurance helps manufacturing clients build resilience against tornado risks 

Descartes’ parametric tornado insurance provides bespoke coverage for each client against tornado risks. We design unique policies for different clients based on their specific needs and budgets. Descartes’ parametric solutions help manufacturing clients bounce back rapidly without complicated and time-consuming loss adjustment processes, but with our expedited pay-out process.

Fill out the form to download our latest Tornado Deal Spotlight and get an overview of Descartes’ parametric tornado insurance in action.

Widening Tornado Alley puts manufacturing sector at risk and heightens demand for parametric tornado insurance 

Climate change is expanding the ‘Tornado Alley’, leaving corporates and public entities increasingly exposed to the growing risk without adequate tornado insurance. Though tornadoes occur all over the US, including Alaska and Hawaii, the Tornado Alley is used to specifically refer to the regions where tornadoes are most frequent. This used to comprise areas from central Texas through the Great Plains of Nebraska and South Dakota, however, recently it is shifting and widening towards the East Coast and into states such as Kentucky, Illinois, Arkansas, Missouri. 

In the light of these trends and regions where tornadoes are prevalent, companies that sit on or are adjacent to the Tornado Alley are exposed to huge amounts of risk in the event of tornadoes. Manufacturing companies, for example, are often very vulnerable in the wake of tornadoes given that they need to curtail production while repairs are made or shut down the operations completely for extended periods of time which can lead to loss of millions of dollars. For instance, a number of top automotive manufacturers and suppliers were among the companies disastrously impacted by the tornadoes that ravaged the Midwest and southern regions of the US in 2021. 

Despite the increasing demand for tornado insurance from US manufacturers, few of existing insurers and market solutions can address their risk exposure. It not only gravely impacts the manufacturing companies themselves, but also leaves the supply chains disrupted and ultimately results in significant losses to the local economy

Descartes’ parametric insurance helps manufacturing clients build resilience against tornado risks 

Descartes’ parametric tornado insurance provides bespoke coverage for each client against tornado risks. We design unique policies for different clients based on their specific needs and budgets. Descartes’ parametric solutions help manufacturing clients bounce back rapidly without complicated and time-consuming loss adjustment processes, but with our expedited pay-out process.

Fill out the form to download our latest Tornado Deal Spotlight and get an overview of Descartes’ parametric tornado insurance in action.