Descartes Insurance, the Paris-based risk-carrying subsidiary of parametric-insurer Descartes, has expanded its offering to corporate clients and public institutions to include credit and political risk insurance (CPRI).
To support its expansion into this new class of business, Descartes has hired Hélène Martin, former head of Single Risk, Credit & Political Risk – France at Coface. She joins Benjamin Lambert, Descartes’ senior CPRI underwriting manager, who joined Descartes in September 2024. The pair has more than 25 years’ experience in credit risk.
Distributed through brokers, the new offering protects policyholders against political risks affecting foreign investments and counterparty credit risks. It covers individual transactions for their entire duration under a single contract. The first such policies have already been issued to clients in France.
This strategic initiative is a major diversification for Descartes Insurance, which also underwrites and carries parametric weather risk, alternative risk transfer solutions, and a diverse range of conventional insurance products including cyber risk insurance for clients in the European Economic Area, the company said.
A company representative noted that Descartes Insurance’s CPRI cover is not a parametric-type policy.
“The product covers policyholders against political risks affecting their foreign assets and investments, as well as credit risks related to their counterparties. It is designed to be used in individual transactions, with a single contract. The CPRI policy covers the entire duration of the transaction,” the representative explained in an email.
“Consider a project in the renewable energy sector. A French company delivers wind turbines to another company in Brazil. However, part of the payment is made after delivery,” the representative said. “The French company is therefore exposed to credit risk until delivery to obtain full payment from the Brazilian counterparty. If payment never occurs for financial or political reasons, this is referred to as non-payment, which is covered.”
“This product combines our underwriters’ proven expertise with Descartes’ own data, and with new, technology-centred approaches to risk management,” commented Descartes Insurance CEO Kevin Dedieu, in a statement announcing the product launch.
“Given the growing impact of political and credit risks in our changing world, it provides timely support for brokers and their corporate clients, complementing the recent launch of our cyber and technical risk insurance offering, and our parametric products. It strengthens our position as a leading player in commercial insurance,” Dedieu added.
About Descartes
Descartes is composed of Descartes Insurance, a full-stack insurer operating in several European countries, and Descartes Underwriting, a global MGA backed by a panel of tier one risk carriers. The company has been financed with over $141 million by investors including Highland Europe, BlackFin, Serena, Cathay, Eurazeo and Battery.
Source: Descartes Insurance
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