Group 8
2021-07-28

Tornado & Hail Insurance: Golf Industry Deal Spotlight

Rise in demand for tornado and hail insurance in a hard market

As the globe continues to warm, natural risks become increasingly intense. With these trends, the demand for adequate protection across industries rises, including the demand for tornado and hail insurance. Tornados and hail may develop as warm, moist air rises from the earth forming convective storms, and studies show that climate change and warmer temperatures are projected to turbocharge the disastrous effects of such perils.

In the Plains, Midwest, Southeast and Northeast of the US, tornados and hail cause substantial amounts of material damage to residential and commercial properties, automobiles, and agriculture. However, their effects as a non-damage business interruption are often neglected and remain widely uninsured. In the hospitality industry, for instance, loss of attraction or denial of access leads to a huge financial loss when natural disasters hit, particularly, during peak seasons. 

In 2019, over 7.1 million US properties were affected by hail damage, which led to losses worth more than $13 billion. In 2020, claims amounted to almost $14.2 billion in losses. Tornados, as one of the most devastating natural disasters, contributed significantly to the insurance industry’s 2021 bill of over $105 billion. The rising intensity of natural perils and hikes in losses puts increasing pressure on insurers, resulting in reduced capacities and spiking prices. Trapped in the hard market, ultimately, business and public entities are left under-insured and under-protected. 

Descartes’ state-of-art technology helps business and public entities bounce back faster from natural risks

To offer adequate parametric tornado and hail insurance, Descartes develops tailor-made risk models with customized indexes for each client. Utilizing modern radar and AI technologies, we are able to monitor evolving risk exposures. Once the threshold is reached or exceeded, the pay-out is swiftly executed without a long and complicated loss adjustment process, which helps the business and public entities build resilience against natural disasters. 

Fill out the form to download our deal spotlight and learn more about how one corporate golf course management client experienced Descartes’ parametric solutions, with a joint tornado and hail cover. 

Rise in demand for tornado and hail insurance in a hard market

As the globe continues to warm, natural risks become increasingly intense. With these trends, the demand for adequate protection across industries rises, including the demand for tornado and hail insurance. Tornados and hail may develop as warm, moist air rises from the earth forming convective storms, and studies show that climate change and warmer temperatures are projected to turbocharge the disastrous effects of such perils.

In the Plains, Midwest, Southeast and Northeast of the US, tornados and hail cause substantial amounts of material damage to residential and commercial properties, automobiles, and agriculture. However, their effects as a non-damage business interruption are often neglected and remain widely uninsured. In the hospitality industry, for instance, loss of attraction or denial of access leads to a huge financial loss when natural disasters hit, particularly, during peak seasons. 

In 2019, over 7.1 million US properties were affected by hail damage, which led to losses worth more than $13 billion. In 2020, claims amounted to almost $14.2 billion in losses. Tornados, as one of the most devastating natural disasters, contributed significantly to the insurance industry’s 2021 bill of over $105 billion. The rising intensity of natural perils and hikes in losses puts increasing pressure on insurers, resulting in reduced capacities and spiking prices. Trapped in the hard market, ultimately, business and public entities are left under-insured and under-protected. 

Descartes’ state-of-art technology helps business and public entities bounce back faster from natural risks

To offer adequate parametric tornado and hail insurance, Descartes develops tailor-made risk models with customized indexes for each client. Utilizing modern radar and AI technologies, we are able to monitor evolving risk exposures. Once the threshold is reached or exceeded, the pay-out is swiftly executed without a long and complicated loss adjustment process, which helps the business and public entities build resilience against natural disasters. 

Fill out the form to download our deal spotlight and learn more about how one corporate golf course management client experienced Descartes’ parametric solutions, with a joint tornado and hail cover.