Descartes Insurance has launched a parametric insurance product for SME manufacturing and retail clients that triggers on independent confirmation that a cyber encryption incident has occurred at the insured organisation as part of a ransomware attack. The cover pays a fixed daily limit for each day the event prevents normal business operations.

Initially available in France, Descartes said it aimed to expand into other European countries in the coming months.

Louis Bollaert, chief commercial and marketing officer at Descartes, said: “Our parametric models help customers calculate how much a day of business interruption will cost them. That predetermined daily claim, in combination with a very simple contract, lets us intervene immediately after an attack to drastically reduce its impact on the victimised customers, and help get them back up and running as fast as possible.”

He added: “We’re targeting 5% of the French cyber insurance market within the next 18 months. In the interim, we intend to introduce the product in other EU countries, as we see demand from our existing climate base.”