Severe thunderstorms are causing the biggest losses for insurers today and, historically, when a standout threat emerges the insurance industry responds by carving that peril out of standard policies so that it can be modeled, priced, reinsured, marketed, and addressed separately (like cat bonds). Demex is under the radar working on this precise product for thunderstorms. For the first time this year, during reinsurance renewal season, Demex will be selling a fix into the US market: Two of the top three global reinsurance brokers are selling Demex’s storm product to their insurer customers this year – it’s like a security patch for insurers overwhelmed by these losses. Major investors with weather desks are backing (providing capacity for) the product.
