From climate change-related catastrophic events to social unrest, the insurance industry faces huge claims. While some risks are easier to predict than others, new data sources may help insurers and customers find ways to reduce risk.
In this insurance news analysis, abby compton I talked about new data from satellites showing extreme surface temperatures in cities. This data scale and granularity may be valuable in: Underwriting and Public-Private Partnerships Designed to prevent heat-related illness and death. It could have similar applications in real estate in mitigating fire risks.
We also discuss the industry-wide shift in how operators respond to climate change. We see movements towards and away from sustainability initiatives. Several operators have recently withdrawn Net Zero Insurance Allianceemission reduction requirements have now been relaxed. at the same time, Association of British Insurers Members are asked to strengthen their commitment to biodiversity.
Another area of risk that is difficult to predict is social unrest and its impact on property owners and businesses. although Bastille Day Property Damage Protests in France have become predictable, but last month’s protests were unexpected and quickly escalated. Operators there are currently paying out claims estimated to range from €650 million to €1 billion.
Driving the future of insurance: Modernizing technologies like artificial intelligence and cloud-driven data analytics can help insurers achieve profitable growth by increasing revenue and cutting costs.
