Winter Storm Reinsurance: Reinsurance  for secondary perils, modeling and transferring winter storm risk

Contact Us

World's first reinsurance solution for winter storms

Addressing the insurance industry's most urgent challenge - the accumulation of secondary peril losses that now surpass all annual catastrophe losses, threatening insurers' earnings and the sustainability of their businesses.

We're a secondary-perils shop. We solved SCS. The market asked us to solve winter.

Award-winning severe convective storm product, proven in market - same methodology, new peril.
SCS TRACK RECORD - NOT WINTER RESULTS

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

Winter Storm Reinsurance: Modeled Loss Aggregate

Custom-Modeled

Built on CARRIER'S UNIQUE claims and exposure data - not industry averages

Aggregate Protection

Covers cumulative Winter Storm losses across across the full winter season

Fast Payouts

Quarterly settlement, payment within 45 days of quarter-end

Competitively Priced

Trusted modeling reflects carrier's exposure management and policy terms & conditions

Significant Capacity

$500M+ committed from A-rated reinsurers; up to $75M per cedent

Complementary Coverage

Targeted coverage (geography / peril / return period) complements reinsurance program

From Data to Protection - In One Model

1

CARRIER DATA IN

  • 7+ years of claims
  • Exposure data by county
  • Projected exposures
2

DEMEX MODEL

  • Machine Learning driven prediction
  • Calibrated to
  • CARRIER'S LOSS EXPERIENCE
  • Weather + exposure + claims
3

PROTECTION OUT

  • Aggregate reinsurance
  • Quarterly settlement
  • 45-day payouts
Demex constructs models FREE of charge. Fully transparent methodology, testing results, and settlement.

What is the Demex Winter Storm Re Model?

A predictive model for retained Winter Storm losses across an insurer's portfolio, which forms the basis of a modeled loss aggregate reinsurance agreement
Our modeling approach has been meticulously constructed to produce the most accurate predictions possible.

Modeled loss index tracks indemnity losses and underlays reinsurance product

  • Captures peak loss years
  • Matches annual volatility
  • Reflects latest in-force policy T&Cs

Case Study: Winter product design for a cedent

Cedents confirm that Demex modeled loss tracks well with indemnity loss experience

Winter Storm Uri Claims for a National Carrier (February 12-18, 2021)

Cedent's Loss Profile Shaped by Cold-Sensitive Regions

Cedent portfolio shows elevated sensitivity to winter weather, with losses varying significantly in response to severe cold events.

Practical application: Protection opportunity for winter storms

Combined Ratio Impact: Board-Ready Protection Economics

In a bad winter year, reinsurance can deliver 7+ points of combined ratio relief.
Scenario
Original CR
+ CR Spend
- CR Recover
= Adjusted CR
Impact
Bad Winter Year
118.0%
+ 2.0 pts
-9.0 pts
111.0%
-7.0 pts relief
Average Year
100.0%
+ 2.0 pts
-2.5 pts
99.5%
-0.5 pts net
Quiet Winter Year
92.0%
+ 2.0 pts
0 pts
94.0%
Cost of protection

What Demex delivers at every engagement

  • Cedent-customized model built free of charge from your claims + exposure data
  • Year-by-year combined ratio hindcast using your actual CR history
  • Two structure scenarios tailored to your loss profile (attach / exhaust / limit / ROL)
  • Board-ready output in CFO language: CR Spend, CR Recover, Net CR Recovery

Designed for Capital Credit: Rating Agency Recognition

~90%
Expected Capital
Credit Treatment

AM Best Engagement

Developing white paper on capital credit treatment for modeled-loss reinsurance.

Demotech Engagement

Parallel engagement extending capital credit recognition to Demotech-rated carriers.

Near-Maximum Credit

~90% is the maximum achievable for parametric / modeled-loss products.

Changed Buyer Economics

Premium cost is partially offset by capital efficiency gains.

The CFO conversation has changed

With capital credit recognition, Demex protection is capital-efficient risk transfer that your rating agency accepts. The premium is not just expense - it's a recognized reduction in net risk.

Why Demex vs. the Alternatives

Demex Winter Re
Indemnity Aggregate
Cat Model for Winter
Industry Loss Warranty
Basis Risk
Low - built on your data
Lowest
High - not Winter optimized
High - industry loss, not yours
Payout Speed
45 days
Months
Months
Weeks
Availability
$500M+ capacity
Scarce & expensive
Available
Available
Capital Credit
~90% expected
Full credit
Full credit
Limited
Winter Optimized
Yes - purpose built
Not peril-specific
No - built for peak CAT
No
Cost to Model
Free
N/A
License fees
N/A

Two questions to determine your fit.

02 . EARNINGS VOLATILITY

Winter losses whipsaw your results?

If a bad winter swings your combined ratio and you want to smooth it, that's exactly the conversation to have.
01 · GEOGRAPHY

Stable climates not built for extreme winter?

Northeast, Ohio Valley, mid-Atlantic, and parts of the South - where a hard freeze is rare enough that books aren't built for it.
THE DATA HOOK
Send us your data even if you're unsure - you may find a bigger problem than you realized.

Submit your data. We do the rest. No cost to model.

01

Submit your data

Claims & exposure history. Unsure if you qualify? Send it anyway.
02

We build your model

Free, custom winter model calibratedto you
~2-4 weeks.
03

Review the results

Transparent methodology - see exactly how the index is built.
04

Decide - no obligation

Take the insight whether or not youbind. The model is yours.
No cost to model
·
No obligation
·
Transparent methodology

Close the gap on your reinsurance coverage.
‍Talk to our team today.

Contact Us
HomeNewsContactLEGALProductAbout
Back to top
HomeAboutProductNewsContactLegalLinkedIn
New York
info@thedemexgroup.com