Descartes launches full-stack insurer with plans for EEA expansion in 2023

Climate risk managing general agency (MGA)  Descartes Underwriting has launched a full-stack insurer licensed to underwrite risk by the French regulator.

Backed by a panel of A-rated risk carriers, Descartes Insurance can issue policies directly to mid-market clients in France, with plans to expand to other countries in the European Economic Area (EEA) over the course of 2023.

The new entity intends to bring coverage and fresh capacity to a wider range of clients following a period of exceptional drought, flooding and hail events across Europe. Descartes Insurance will offer cover for additional exposures, emerging risks, and product lines issued alongside its existing parametric structures.

Sébastien Piguet (Pictured), Descartes Underwriting’s CUO, will serve as CEO of Descartes Insurance. Kevin Dedieu, Descartes Underwriting’s chief R&D officer, will take the role of deputy CEO of Descartes Insurance.

“This is a huge step forward for Descartes but it also marks the evolution of the insurance sector and the way we protect customers,” said Tanguy Touffut, Descartes Underwriting’s CEO and Descartes Insurance’s non-executive chairman. “We seek to represent the next generation of risk transfer markets backed by industry leaders. By combining innovative insurance structures, powerful technology, and our own risk capital, we protect clients against the full spectrum of climate and emerging risks with unparalleled efficiency.”

Piguet commented: “It is my firm belief that Descartes Insurance has all the resources needed to thrive in these challenging times, be it hard market conditions, the impact of climate change or the transition towards a net-zero economy. I am elated to start this new journey as a full-stack risk carrier with the support of Descartes Group’s incredible team.”

Dedieu added that he “view’s the launch of Descartes Insurance as the logical next step given the continued investment in our scientific team, technology and R&D to revolutionize the entire insurance process, from risk assessment to claims payment.”

Joining Descartes Insurance as an independent board member, Philippe Rocard, said: “The parametric approach has opened a new frontier for insurance. And Descartes Underwriting is a front runner in this new world. It has developed impressive mathematical and physical knowledge to help corporations protect themselves against many perils including climate change. I am thrilled to be a member of this collective adventure.”

Descartes chief operating officer, Violaine Raybaud, concluded: “Since our creation, Descartes’ innovative edge stems from our ability to handle new data sources and extract value for our brokers and clients. We regard this milestone as a momentous opportunity to further infuse technology and Descartes’ science-driven, client-first approach within the core of our insurance operations.”

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