FOR IMMEDIATE RELEASE
Descartes Underwriting Launches Parametric Flood Coverage Tailored to Coastal Small Businesses
Data-driven policies pay cash within days of a flood, bypassing adjusters and filling gaps left by traditional NFIP limits.
Miami, FL – November 20, 2025
Coastal small- and medium-sized enterprises (SMEs) battered by rising premiums and restricted flood capacity gained a new shield today with the nationwide roll-out of Descartes Underwriting’s “Flood-at-Location” parametric policy. The product, backed by up to USD 70 million per contract, triggers a pre-agreed cash payout as soon as on-site sensors confirm flood depth ≥ 3 inches, eliminating the loss-adjustment delays that routinely stall post-storm recoveries.
According to NOAA, the 2024 hurricane season produced a record 18 named storms, pushing U.S. commercial flood losses to USD 75 billion and driving yet another round of insurer withdrawals from Gulf and Atlantic markets . Traditional coverage—where available—now averages a 45-day claims cycle and a USD 50,000 deductible for SMEs, data from the Florida Office of Insurance Regulation show. Descartes’ parametric model compresses payment to 5–7 calendar days and carries zero deductible, a liquidity advantage analysts say can cut revenue interruption by 60 percent for restaurants, marinas, and boutique hotels that drive coastal economies .
“Speed is survival for Main-Street coastal operators,” said Tanguy Touffut, CEO of Descartes Underwriting. “By marrying IoT water-level sensors with machine-learning flood footprints, we can text a policyholder that their payout is en-route while the storm surge is still receding—no adjusters, no paperwork, no haggle.”
Each policy is priced from 0.8 % to 2.3 % of the selected limit, depending on site elevation and historical storm-surge return periods modelled on 50 years of NOAA tide-gauge data. Clients choose three depth triggers—6 in, 12 in, or 24 in—each mapped to escalating payout tiers, allowing a retail shop on Galveston’s Strand to buy a USD 250,000 limit that pays USD 50,000 once ankle-deep water is recorded. Because the cover is parametric, proceeds can be used for any loss, from inventory spoilage to marketing campaigns needed to win customers back.
The launch arrives as the National Flood Insurance Program enforces its new USD 500,000 commercial cap and tighter eligibility rules that push thousands of coastal SMEs into the surplus-lines market. Allied Market Research estimates the U.S. parametric flood segment will grow 12 % CAGR through 2033, outpacing the 3 % growth of traditional property lines .
Early adopters in Louisiana and the Florida Panhandle reported post-storm payouts within 96 hours during 2024’s Hurricane Helene, enabling re-opening of convenience stores and charter-fishing fleets weeks faster than neighboring properties awaiting indemnity inspections .
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