PriyaPatel
TLDR:
- Insurers are facing challenges due to climate risks and extreme weather events
- Satellite technologies are now offering cost-effective solutions for risk monitoring and assessment
In a world where global temperature records are being set regularly, insurers are facing the urgent need to address climate risks and extreme weather events. Traditional data sources and modeling tools are struggling to keep up with the pace of climate change, leading the industry to explore new tools like satellite technologies for more accurate risk assessment and modeling.
One key area where satellites are making a difference is in monitoring property risks. With the effects of climate change already causing significant damage, insurers are turning to satellite-based monitoring to better understand and quantify risks such as subsidence. Satellite surveys taken every two weeks provide almost real-time exposure views, allowing insurers to accurately assess risks on a city and even individual property level.
Infrastructure resilience is another crucial area where satellites are proving valuable. From railways and highways to dams, critical infrastructure is under increasing pressure from climate change. Satellite-based movement surveys can help detect structural weaknesses early on, reducing the risk of significant losses from service disruptions. For example, satellite data could have detected developing deformation on a failed dam up to 14 months before its breach, giving engineers time to take remedial action.
Overall, integrating satellite-based monitoring and assessments offers insurers a more accurate way to set premiums, improve loss ratios, and reduce costs, all while enhancing resilience to climate-related risks. With access to up-to-date data and risk modeling through satellites, insurers can better protect infrastructure, reduce financial losses, and navigate the challenges posed by climate change.
