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Climate Risk - Featured (5)

Collaboration for understanding climate risk

Climate Risk is InsTech’s monthly newsletter dedicated to climate-related insurance news – you can sign up for free here.

Collaboration for understanding climate risk

Building natural catastrophe models is not easy. Climate change brings an added layer of complexity, making it more important than ever for insurers and risk managers to understand the changing nature of catastrophe risk. One way this challenge is being tackled is through new initiatives that allow catastrophe modellers to collaborate by sharing research, methods and data.

The Journal of Catastrophe Risk and Resilience has recently been launched. It is a free digital journal founded by organisations including AXA XL, Oasis LMF, Fathom, JBA Risk Management, Reask, WTW, Guy Carpenter, Aon and Liberty Mutual. Its aim is to make climate and catastrophe knowledge more open and accessible to the scientific, risk management and insurance communities. It is seeking submissions on a range of topics, including the monitoring and modelling of natural hazards, exposure and vulnerability, catastrophe risk management and mitigation strategy.

Insurers also want their own unique view of risk. This is often achieved through the use of several models and data providers. Oasis LMF was founded in 2012 to increase the model choice for insurers and reinsurers. There have also been several recent projects that are making it easier for the insurance and risk management communities to access multiple models in one place.

For example, Moody’s RMS is integrating Nasdaq’s Risk Modelling for Catastrophes service into its Intelligent Risk Platform (IRP). Once completed, this will allow Moody’s RMS customers to access multiple models through the IRP. Swiss Re Corporate Solutions’ “Risk & Data Services” is also providing risk managers with access to a range of data and models through its open infrastructure.

These collaborations and partnerships have a range of benefits to the industry, from improving the accuracy of models to making the underwriting process more efficient for insurers. At InsTech we hope to see this collaboration within the modelling and insurance community continue to grow.

Reask and Kettle: Building transparent coverage for hurricane risks

David Schmid, Head of Parametric Products at Reask, and Brian Espie, Chief Underwriting Officer at Kettle, join Henry Gale to discuss the new parametric reinsurance solution MGA Kettle and modelling firm Reask have created for Florida hurricane risks. This month Reask has also announced its $4.6 million USD seed funding round, bringing its total funds raised to date to $6.55 million USD.

Tensorflight: Property data around the world

InsTech’s Ali Smedley sat down with Tensorflight’s Maxi Wandel to discuss how the company’s solution can speed up the underwriting process and the partnerships it is looking for. The discussion also covered how Tensorflight is helping to assess building damage in Ukraine. 

Evening Event: Identify, assess and mitigate – the new technology available to risk managers

Join us at our next Live Event to hear from companies such as Previsico, Reask and Kroll that support risk managers with data and technology. The event will include case studies with topics including sensors, climate modelling, digital twins and carbon emissions measurement.

In the news…

Aon: US hurricane losses to rise by over 10% under climate change scenarios

According to Aon’s work with Columbia University, climate change could increase hurricane losses in the US by at least 10% over 20 years in certain scenarios. Aon is incorporating climate data and insight from this collaborative work into its tropical cyclone models to help their clients better understand future financial losses.

Guy Carpenter proposes new climate resilience bonds

Guy Carpenter, in collaboration with Queen Mary University of London’s Dr. Franziska Arnold-Dwyer, has proposed a new financial instrument, the Climate Resilient Development Bond. It combines parametric risk transfer with financing for loss prevention projects to help communities become more resilient to climate events. You can read more in issue 51 of the Parametric Post newsletter.

Arturo expands its catastrophe response capabilities to the US

Over the last few years, Arturo has been working with companies such as ICEYE and Vexcel Imaging to provide a natural catastrophe response solution in Australia. Arturo’s solution allows insurers to provide early warnings to policyholders and to assess catastrophe event impacts as they occur. The company is now expanding this solution to the US.

dClimate partners with Hydro-GIS for flood and rainfall data

Information from Hydro-GIS will now be available on dClimate’s open and decentralised climate data marketplace. Hydro-GIS will provide historic extreme rainfall data, flood databases and flood footprints.

Raincoat launches parametric hurricane microinsurance in Puerto Rico

Parametric insurance technology company Raincoat has launched a hurricane microinsurance product in Puerto Rico with Popular Insurance. Pay-outs are triggered by data from the National Hurricane Center. You can learn more about Raincoat on InsTech podcast episode 183, where Jonathan Gonzalez, Co-founder and CEO, talks about how Hurricane Maria inspired him to launch the company.

Moody’s RMS hurricane models approved for rate filings in Florida

Version 23 of the Moody’s RMS North Atlantic Hurricane Models has been approved by the Florida Commission on Hurricane Loss Projection Methodology for use in residential rate filings with the Florida Office of Insurance Regulation. It is a requirement for all models used by Florida insurers for pricing flood and hurricane risks to be certified every two years. The Moody’s RMS models include new updated data and learnings from major events over the last few years.

WTW and Kroll launch property rebuild assessment service

Developed in partnership with Kroll’s property insurance valuation platform, the new service will provide WTW’s clients with property rebuild costs. The service offers various valuation capabilities, including online risk rating and valuation of building reinstatement costs in comparison to current values.

Marsh report: Innovations in nature insurance for business

Technological innovations such as remote sensing are enabling underwriters to expand cover to new types of nature-related risks. Marsh’s latest report covers new applications of nature insurance solutions for businesses and barriers to innovation.

Webinar: Mastering hurricane response in 2023 with lessons from Hurricane Ian

EigenRisk recently hosted a webinar with guest speakers from Reask and VAVE to discuss lessons learned from Hurricane Ian and how to prepare effectively for reducing losses in the upcoming hurricane season. It is now available to watch on-demand here.

Fathom interview: Flood risk and the UK housing market

In a recent interview with CNBC, Fathom discussed how flood risk is likely to evolve in the future and the increasing trend of properties being built in areas identified as vulnerable to flooding. You can watch the full interview here.

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