SCS Reinsurance: a unique reinsurance solution to protect the earnings and surpluses of insurance companies.
Contact Us
InsurTech Product of the Year
Winner, Innovation in Parametrics, The Insurer
Closing the Protection Gap
Aggregate Reinsurance for Sever Convective Storms
Retained thunderstorm risk is the biggest problem facing US insurers
The Problem:
Reinsurers no longer offer affordable and scalable reinsurance
capacity for earnings perils like severe convective storms that erode
a primary carrier's surplus and earnings
- Traditional CAT exhibit high basis risk and low skill when predicting aggregate losses caused by high-frequency, low-severity perils like hail, wind, and tornado
- Socioeconomic factors produce large loss cost uncertainty for reinsurers (exposure management, claims handling, inflation)
- The supply of reinsurance capacity has decreased significantly for frequency protection against aggregate SCS losses
The financial impact on primary carriers:
Earnings volatility and the frequency of credit rating downgrades
have increased significantly in recent years
What is the Demex SCS Re Model?
A predictive model for retained Severe Convective Storm (SCS) losses across an insurer's portfolio, which forms the basis of a parametric aggregate reinsurance agreement.
Our modeling approach has been meticulously constructed to produce the most accurate predictions possible.
We're a secondary-perils shop. We solved SCS.
Award-winning severe convective storm product, proven in market - same methodology, new peril.
6 Recoveries
2025 policies attached & paid - two exhausted full limits
$500M+
Committed capacity from A-rated reinsurers
$330M+
Limit placed
+/-5%
Model prediction vs. actual losses
Recognized across the market
1.webp)
1.webp)
1.webp)
1.webp)
The judges said that SCS Re is "an excellent innovation for a parametric modelled loss reinsurance product. This groundbreaking reinsurance product for the accumulation of severe connective storm issues serves a major gap in the market.”
“The judges said that Severe Storm modeling and (re)insurance capacity is one of the biggest issues we face today and Demex has begun to solve both. The thesis and approach is outstanding. Demex is one to watch.”
“The judges were impressed by the early traction of Demex’s reinsurance solution and how it addresses the complex severe convective storm peril.”
Close the gap on your reinsurance coverage.
Talk to our team today.
Contact Us
