Climate risk company expands coverage with snowfall insurance

The Demex Group, a climate risk management company, has launched snowfall insurance offerings that provide financial climate resilience for snow-dependent businesses and property owners.

As a leader in comprehensive climate risks modeling and assessments, Demex introduces two new unique snow insurance policies that offer stability in snow-related operational costs and budgets. These new policies – Demex Revenue Protection Insurance and Demex Cost Control – are backed by Evanston Insurance Company, a subsidiary of the Markel Corporation. 

The Demex Revenue Protection Insurance plan creates income stability for snow-reliant businesses, such as snow removal contractors, during mild winters that yield little snowfall. The Demex Cost Control Insurance, on the contrary, is designed for cases of more severe winters. This insurance policy is for property owners, facility managers and other organizations that face increased operational costs when snowfall is high. When Demex models snowfall removal costs that are above an agreed threshold, policyholders of the Demex Cost Control Insurance will receive a recovery. 

Carlos A. Oliveras, head of insurance at Demex, writes to Digital Insurance: "Our technology is the foundation for risk transfer. Each risk transfer product, including our new snowfall cost control and revenue protection insurance products, are customized for the unique weather challenges that must be addressed by our customers." 

Demex's digital platform, the Demex Solutions Center, offers instant climate assessment and risk management through data integration and other scalable analytic capabilities –  and even enables policyholders to access personal information and hyperlocal climate data.

Oliveras explains, "The process begins with our patent pending machine learning algorithms to model detailed views of weather exposures across customer portfolios. Then, using client-relevant financial data, the platform assesses the financial impact of climate extremes on that portfolio. It measures the changing climate across each element then appraises the insured's risk at the baseline and climate adjusted scenarios." 

The Demex Solutions Center also allows access for climate risk appraisals and creates parametric models. Leveraging these assessments with market-based risk pricing, Demex identifies weather-related financial losses and determines how the risks affect asset values or operational incomes accordingly. 

"Over the past year, we've launched multiple products, including new Snow Solutions, Extreme Weather Insurance, and Climate Risk Appraisals. As we look ahead, we will continually utilize our deep expertise in climate-linked economic modeling and analysis to create new risk transfer products that provide financial resiliency from extreme weather volatility for our expanding client base," Oliveras writes.

Demex plans to launch new technology and reinsurance products for severe thunderstorms in the near future.