As extreme weather escalates in a changing climate, protection has not kept pace – until now
Climate Change is Disrupting Insurance
Traditional insurance options for severe weather focus on the damages from catastrophic events like hurricanes but ignore less severe, higher frequency extreme weather events like heat waves, droughts, and storms. As a technology-enabled MGA, Demex uniquely addresses this gap. Demex’s groundbreaking approach to non-catastrophic weather risk management uses customer data to quantify and transfer unique financial risks for insurers and corporates.
Demex Reshapes the Market
Retained Climate Risk Reinsurance (RCR)
Demex RCR is a first-of-its-kind layer of protection for insurers. Policies cover the risks of non-catastrophic, higher-frequency weather events that typically occur within the retention layer. These events now are occurring five times more frequently than they were in the 1980s. Demex RCR supplements traditional reinsurance programs to minimize underwriting losses for insurers.
Case Study in Retained Climate Risk Reinsurance
Operational Climate Risk Coverage (OCR)
High-frequency extreme weather events like heavy rainfall, snowfall, and extreme temperatures also lead to unexpected out-of-pocket costs and lost revenue for many businesses. Demex OCR provides budget stability for customers vulnerable to increasingly volatile weather.
Case Study in Operational Climate Risk Coverage
Partners
Our partners include leaders in insurance, brokerage, reinsurance, and capital markets. Working with these partners, Demex delivers innovative end-to-end risk management solutions, from analyzing to transferring clients’ climate-related risk.
Stats
CostIncrease
500%
in U.S. non-catastrophic extreme weather since 1980
– NOAA
Heat andDrought
$9.3 B
economic losses in the U.S. in 2022
– NOAA
WinterStorms
$25.2 B
economic losses in February 2021 cold snap and winter storm
– NOAA
GlobalInputs
22 M
to Demex OCR
IncreasedFrequency
5-fold
of U.S. non-catastrophic extreme weather events since 1980
– NOAA
Heat andDrought
$75.7 B
economic losses in the U.S. from 2012-2022
– NOAA
WinterStorms
$35.4 B
economic losses in the U.S. economic loss from 2012-2022
– NOAA
GlobalInputs
4.1 M
to Demex RCR Severe Storm Supplemental Coverage
SevereStorms
$18.9 B
economic losses in the U.S. in 2022
– NOAA
HeavyRain
$1.2 B
economic losses in the U.S. in 2022
– NOAA
Custom FinancialInstruments
1 B
designed by Demex tech
Risk ScenariosPer Second
2,400
computed by Demex tech
SevereStorms
$206.3 B
economic losses in the U.S. from 2012-2022
– NOAA
HeavyRain
$60.4 B
economic losses in the U.S. from 2012-2022
– NOAA
Custom FinancialInstruments
19 M
priced by integrating client data through Demex tech
Severe StormCoverage
1st
for insurers’ retention layer to supplement existing reinsurance
Resources
November 17, 2022
“Loss and Damage” Discussions at COP27
“Loss and damage” due to climate change is a focus of the 27th Conference of the Parties of the United Framework Convention Climate Change, known as COP27.
August 15, 2022
Demex Feature on Bloomberg Radio
I recently had the opportunity to speak with David Westin from Bloomberg Radio's Balance of Power. We talked about climate resilience, heatwaves, and parametric insurance. Here's a brief summary of our conversation along with some clips from the on-air interview.