Descartes Insurance, the Paris-based risk-bearing arm of parametric insurer Descartes, has broadened its services for corporate clients and public institutions by adding credit and political risk insurance (CPRI) to its portfolio.
To drive its entry into this new line of business, Descartes has appointed Hélène Martin, former Head of Single Risk, Credit & Political Risk – France at Coface. She joins Benjamin Lambert, Descartes’ Senior CPRI Underwriting Manager, who came on board in September 2024. Together, they bring over 25 years of combined experience in credit risk.
Offered through brokers, this new product safeguards policyholders against political risks impacting foreign investments as well as counterparty credit risks. It provides coverage for individual transactions throughout their full term under a single contract. The inaugural policies have already been issued to clients in France.
This strategic move marks a significant diversification for Descartes Insurance, which currently underwrites and assumes parametric weather risks, offers alternative risk transfer solutions, and provides a broad spectrum of traditional insurance products—including cyber risk coverage—for clients across the European Economic Area, the company stated.
A company spokesperson emphasized that Descartes Insurance’s CPRI is not structured as a parametric 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.
