Willis has launched a sensor-based parametric insurance product covering localised flooding at UK racecourses, addressing a protection gap that has left many venues uninsurable.
The policy was developed with flood forecasting firm Previsico, MGA Descartes Underwriting and Generali, which is acting as the insurer.
UK flood-related costs are forecast to climb by up to 50%, reaching GBP3.6 billion by 2050. Many racecourses sit on low-lying floodplains, exposing them to property damage, clean-up costs and business interruption losses. The exposure has prompted some insurers to exclude affected sites or apply substantial deductibles, narrowing the pool of available cover.
The Willis launch lands as parametric uptake gathers pace. A WTW survey found 76% of risk managers were interested in or exploring parametric solutions, citing faster claim payouts (62%) and the ability to plug protection gaps (54%) as leading drivers, with flood among the most common applications.
Descartes Underwriting estimates more than 300,000 UK commercial properties are exposed to flooding, a cohort largely excluded from Flood Re, which the Bank of England recently confirmed does not cover commercial sites.
The Association of British Insurers (ABI) reported weather-related damage to homes and possessions reached GBP596 million in the first nine months of 2025, up 21% year-on-year.
Royal Windsor Racecourse is the first site to take up the policy, one of 16 UK venues operated by Arena Racing Company, or ARC. Windsor sits on the River Thames and, like Worcester and Southwell, has previously been uninsurable for flood risk.
Claire Wilkinson (pictured above), managing director of alternative risk transfer solutions at Willis, said conventional cover often falls short in high-risk areas, producing steep premiums, large excesses or outright exclusions.
“In contrast, parametric solutions offer an alternative approach, tailored to the specific needs of the client. Claims are paid automatically and promptly when a measurable flood depth trigger is met, regardless of actual damage,” Wilkinson said, adding that the structure gives the policyholder full discretion over how claim proceeds are deployed.
Previsico installs a flood sensor at a location chosen by ARC, with payouts released automatically when water reaches an agreed trigger depth and scaling with the maximum recorded height up to the policy limit. The design strips loss adjustment from the process, while continuous water-level monitoring doubles as an early warning system.
Zurich UK's climate modelling found 42% of top-flight English football grounds face high risk from multiple extreme weather events by 2050, with one in five at high or very high risk of coastal and river flooding.
The ECB reported 27 cricket clubs were affected in the 2024-25 storm season, with Worcestershire's New Road flooding for a fourth time.
Willis said the model can be replicated across flood-exposed racecourses and tailored site by site.
Kieran Gallagher, group operations director at ARC, said the solution would benefit Royal Windsor.
“The business has previously not been able to insure against flooding, so this new approach, combined with the ongoing monitoring of river levels by Previsico, will be hugely important,” Gallagher said.
Hamid Khandahari, parametric underwriter at Descartes Underwriting, said the team built a site-specific view of flood exposure drawing on historical data and accounting for river defences and relief channels, enabling tailored cover where traditional options were unavailable.
