Descartes Underwriting, a global provider of parametric insurance solutions, and specialist risk and underwriting partner OAK Global have announced that Descartes has secured underwriter status with Lloyd’s, the world’s oldest insurance and reinsurance market.
Under the new binding authorization agreement, Descartes Underwriting will create a pathway for bringing additional risks into the London market through OAK Global’s Syndicate 2843 underwriting business.
The company said becoming a Lloyd’s underwriter provides direct access to Lloyd’s underwriting capabilities, providing greater flexibility to pursue growth opportunities in strategic markets beyond the scope of its current carrier relationships.
The enhanced capacity will support its expansion into areas such as the U.S. high-net-worth market, where clients are increasingly seeking alternative ways to protect assets from natural disaster risks.
The company also noted that this arrangement will enable it to support larger and more complex risk exposures that require significant underwriting capacity, including data center risks.
OAK Global said the collaboration demonstrates a shared commitment to scientific and data-driven approaches to risk assessment. The company believes that combining its underwriting expertise with Descartes Underwriting’s proprietary technology and physical risk models will help provide a more accurate understanding of risk than traditional indemnity-based insurance structures.
OAK Global said the collaboration is expected to enhance portfolio performance through transparent risk selection processes, detailed analytics and data-driven underwriting decisions, while providing both organizations with access to new opportunities in the global insurance market.
Tanguy Touffut, co-founder and CEO of Descartes Underwriting, commented: “This designation represents a significant achievement for Descartes as it demonstrates the confidence that OAK Global and Lloyd’s as a whole have in our underwriting expertise, governance framework and operational capabilities. In an increasingly volatile, fragmented and complex world, Descartes is leveraging all forms of innovation to deliver relevant insurance solutions to brokers and policyholders.”
“We are pleased and grateful to be joining the world’s oldest insurance market through our strategic partnership with OAK Global. This partnership will complement our existing portfolio of insurers and reinsurers and open up access to promising new markets.”
Cathal Carr, Founder and CEO of OAK Global, added: “Descartes is exactly the type of partner we wanted to work with – scientific, rigorous and deeply committed to technology-led underwriting. From our first meeting, it was clear that we shared a common ambition to develop innovative parametric solutions that close the protection gap for climate-driven risks in markets that are hard to serve by the wider industry.
“Through our recently launched strategic business unit OAK Horizon, which underwrites risks at the intersection of climate and technology, this partnership opens the door to transactions that support developing economies, food security and public-private partnerships.”
