Ep 115 How Parametric will fix Commerial Insurance: Descartes Underwriting
March 15, 2022
Parametric insurance has been with us for quite a while now, so it is an idea that most of us have become familiar with.
We can all see its advantages, particularly when it comes to almost instantaneous claims payments with practically zero adjustment cost.
But until recently it has been a hyper specialist corner of the market, often restricted to very large very high value contracts such as cat bonds.
This is because it is only now that the cost of technology has come down significantly enough and the availability of accurate information sources has become wide enough to make these often bespoke products relevant at the commercial lines, and even personal lines, levels.
There are lots of small specialist parametric players out there but today’s guests have seen this opportunity and really grabbed it with both hands.
Tanguy Touffut, CEO and co-founder and Violaine Raybaud, Head of business development at parametric specialist MGA Descartes Underwriting don’t do anything by half measures and the business comes fresh from an eye-popping $120mn fund raise.
But that $120mn is not for capital to underwrite with – it is for an enormous investment in people, technology and global locations.
And that’s why I asked them to come on the show. Because for an investment of this size to work, the opportunity will have to be of the once-in-a-lifetime sort.
Tanguy and Violaine clearly believe so and it is great to hear such passion about the prospects for application of parametric solutions in a vast global market like commercial lines.
LINKS:
Here is the link to the $120mn funding announcement that I mentioned:
https://www.descartesunderwriting.com/descartes-underwriting-raises-120-million-to-become-a-category-leader-in-corporate-insurance-worldwide/
We thank our naming sponsor AdvantageGo:
https://www.advantagego.com/
We also thank Claims Direct Access (CDA) for their support today:
https://www.claimsdirectaccess.com/
