Previsico and Descartes partner to deliver superior coverage of corporate flood risk

Previsico, the flood forecasting specialists, have partnered with Descartes, a world leader in corporate parametric insurance solutions for climate and emerging risks, to offer businesses in UK and Ireland accurate flood warnings and lightning-fast claims payments when Previsico’s IoT flood sensors trigger coverage under policies from Descartes.

The number of people in the UK significantly at risk of flooding is projected to increase 61% by 2050 under a 2°C warming scenario, and by 118% at 4°C. This has already affected insurers’ risk appetite, making affordable flood insurance increasingly challenging to acquire.

Previsico provides world-leading flood forecasting and sensor technologies within its Flood Intel Platform, which helps organisations manage their flood risk. Through these, Previsico forecasts the depth and duration of surface water and ordinary watercourse flooding up to 48 hours in advance for individual risks and continuously monitors local conditions, including water levels.

Descartes provides efficient, highly responsive parametric insurance coverage for major corporate clients. With a capacity to underwrite $70 million per policy, unrestricted coverage for any tangible and intangible losses, and claims payments within just days of a flood event, Descartes delivers superior, risk-based coverage and A+ rated financial security.

Steven Hayward, IoT Systems Manager at Previsico, said: “Today, a third of commercial properties in the UK are at risk from flooding and it is estimated that 40% of small and medium-sized businesses never reopen after they experience losses from a significant flood event.

“Our partnership with Descartes is a game-changer. It will provide businesses with our advanced flood warnings and ensure more organisations can potentially receive parametric insurance payments should the worst occur, enabling them to survive the financial impact of flooding.” 

Alessandro Girelli, Underwriting Director, UK & Ireland, at Descartes, added: “Working with Previsico, we’re able to manage corporate flood risk in a simple, transparent and speedy way. We combine real-time data from Previsico’s sensors and public river gauges to underpin claims payments with a bespoke payout structure increasing with the severity of the flood. The arrangement enables us to support flood risk mitigation, with Previsico’s flood forecasts helping companies take action before floodwaters enter their premises.”

Vania Hernandez Bello, Innovation Project Manager at Descartes, said: “With increasingly problematic flood exposures in the UK and our commitment to helping clients become more resilient, partnering with a reliable local expert was essential. Collaborating with Previsico and their advanced flood sensor technology has been instrumental in enhancing our insurance product by enabling more accurate flood level detection.”