Parametric insurance specialist Descartes Underwriting has teamed with Sydney-based risk analytics firm Reask as it looks to expand its global cyclone coverage.

The partnership allows Descartes to use the Reask Metryc product, which provides data required to support parametric triggers in areas where a lack of information would otherwise present a barrier.

“Data dearth in certain regions remains a gating factor to providing parametric insurance covers that enhance resilience,” Descartes Co-founder and Head of Research and Development Kevin Dedieu said.

“Reask leads the charge in its ability to quickly capture a windstorm event or provide wind at location maps in certain areas, such as the South Pacific, where data is less accessible.”

Paris-based Descartes offers parametric products for a range of catastrophes and has more than 150 corporate and public sector clients, according to its website. The firm opened offices in Singapore and Australia last year.

Metryc applies a machine learning approach to wind modelling and enables the probabilistic evaluation of hazard intensity triggers anywhere. Swiss Re said last year it would use Metryc as part of its Storm parametric offering and Reask says more carriers will soon come online with the product.

“Our risk carriers are actively pricing and structuring policies across the globe, and we already have live policies here in the South Pacific,” Reask Chief Commercial officer Nick Hassam told insuranceNEWS.com.au.

“We expect to have live policies for risks in Australia, US, China and Japan before the next cyclone/hurricane/typhoon seasons.”

Descartes says parametric products, which can provide faster payments based on pre-set triggers, can help address the insurance protection gap left by more traditional covers.

In North America, Hurricane Ida had an estimated economic impact of $US95 billion ($131 billion), with only $US30 billion ($41 billion) insured, illustrating the gap even in established markets, it says.