Building resilience to climate risks
Climate Risk is InsTech’s monthly newsletter dedicated to sustainability and climate-related insurance news - you can sign up for free here.
Climate risks: reducing losses by building resilience
According to Gallagher Re, natural perils cost the insurance industry over $120 billion USD in 2023. Whilst many of these losses will have been unpreventable, there are actions that can be taken to help reduce losses in the future.
Early detection of events such as floods and wildfires can give policyholders time to protect valuable assets. For example, Liberty Specialty Markets provides real-time flood warnings to customers. They are triggered by surface water flood forecasts and sensors which are placed in water channels close to their premises, provided by flood technology company Previsico.
Whilst this type of technology has the potential to significantly mitigate damages, it is currently not widespread. We spoke to Swiss Re’s Ruta Mikiskaite, Head of P&C Solutions UK&I, to get her view on how this might change:
“There was a time when hardly anyone bothered with home security systems or smoke detectors. Now, they’re not just present; they’re a must-have in many places. Looking ahead, we might see the same shift for wildfire resilience measures, becoming widespread and essential.”
Alongside early warnings, property resilience measures can be one of the most effective ways of reducing losses. Schemes that encourage properties to be ‘built back better’ after climate-related events is a key way of building resilience. We expect to see increasing support from insurers for these types of programmes over the coming years.
In this month’s issue of Climate Risk, we cover new initiatives for reducing the impact of climate events; including a partnership for severe weather early warnings and investment into companies focusing on climate resiliency.
Between climate risk, supply chain disruptions and digital vulnerabilities, corporates are facing more potential losses than ever. Join us for our next evening event on 5th March where risk managers, innovators and insurers will share their insights on emerging technologies and best practices. Topics of discussion will include net zero strategies, geospatial analytics and parametric insurance.
Catastrophe models have provided insurers with data and analytics to price and manage risk for over 30 years. The community of model buyers, users and reviewers is one of the best examples of collaboration for the benefit of their clients and their organisations. InsTech is delighted to be running a series of quarterly “meet-ups” to provide a chance to meet old friends and make new ones. Our first event will be held on 27th March in collaboration with CoreLogic.
Networking Event: Sustainability in insurance, 2nd May
While every insurance company is at a different stage on its sustainability journey, a lot can be learned from sharing experiences and knowledge. On 2nd May we are hosting an event to bring together the insurance leaders working on ESG and sustainability. It will be an insurer-only evening, with limited spaces available. If you work in a sustainability role at an insurer or broker and are interested in attending, email us at [email protected].
Founded in 2013, GeoSmart Information provides analytics on groundwater flood risk across the UK. We sat down with Paul Drury, Director of Product Development, to discuss why insurers should be thinking about groundwater flooding and what the company can do to help.
We recently spoke with Mitiga Solutions’ EarthScan team to discuss its newest climate intelligence tool, how insurers and corporates are using it and why the company is continuing to invest in climate science expertise.
Wildfires have cost the insurance industry more than $70 billion over the last decade. Early detection and fire prevention strategies are the most effective ways of reducing losses. But to stop the burning quickly, we need to understand how wildfires are starting. This article explores the main ways that fires are being ignited and their effects on insurance.
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In the news...
Flood modeller Fathom will offer its data for non-commercial use to 16 countries under a new agreement with the World Bank. This includes countries that are...
QBE North America has launched a new initiative, the QBE Possibilities Fund, to support early-stage climate projects aiming to contribute to a more resilient and...
CoreLogic estimates that across the greater Los Angeles area, over 540,000 homes are at risk of flash flooding damage. These properties have a combined rebuild value of...
Initially partnering in 2022, modelling firms Reask and Fathom have created a new tropical cyclone rainfall model. It generates rainfall footprints for every current and...
Founded in 2020, Quotech provides technology for commercial underwriters and brokers. The company has worked closely with its clients to create Quex, a new...
WeatherNet’s tool, SurgeCast, predicts the geographical impact of extreme weather events. Ageas UK will use the application to identify impending severe weather and...
Insurer MIC Global has designed a parametric product covering micro businesses and gig workers in India, using technology from Weather Risk Management Solutions (WRMS). The product...
South African non-life insurer Old Mutual Insure will use JBA Risk Management’s flood maps for underwriting both personal and commercial lines. The insurer will access...
In partnership with weather data provider Canopy Weather, EigenRisk hosted a webinar about hail and tornado risk. The discussion covered the importance of understanding...
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HR Operations | Implementation of HRIS systems & Employee Onboarding | HR Policies | Exit Interviews
10 个月Well said. According to the International Finance Corp (IFC), investing 10.2 trillion US Dollars in climate-related initiatives across 21 emerging markets between 2020-2030, could result in creating 213 million jobs. The sectors include decarbonizing the electricity grid, distributed generation, and storage, retrofitting buildings for energy efficiency, low-carbon waste management, green urban transport, decarbonizing heavy industry, climate-smart agriculture, and efficient supply chains. During 2020-2030, these investments are expected to constitute around 2% of the GDP in the target countries. Extrapolating this model, a global investment of $30 trillion between 2020-2050 could potentially generate over 360 million new jobs. However, as per a 2021 World Bank report, failing to address climate change, may lead to the displacement of 216 million people by 2050. Additionally, a United Nations report warns of 80 million job losses globally by 2050 if climate change mitigation efforts fall short. In summary, significant investments in climate initiatives have the potential to create millions of jobs, while inaction may result in substantial displacement and job losses. More about this topic: https://lnkd.in/gPjFMgy7
Founder, CEO, Climate AI/ML Scientist, PhD in Geophysics, Winner of the London Tech Week 2022 startup pitch competition Elevating Founders, TechNation RisingStars-5 London Finalist 2022, fundraising with EIS SEIS (Seed)
1 年Also, check out Weather Trade Net with #YourClimateRisk FREE tool https://www.weathertrade.net/ and https://www.yourclimaterisk.com/
Exciting initiatives to mitigate climate risk highlighted in this month's Climate Risk issue! #ClimateAction
P&C Solutions | Strategy | Innovation
1 年Thank you for a great conversation and featuring us Ali!
CEO at Quotech
1 年Thank you Ali for mentioning Quotech Quex!