The ecosystem of hazard models and data is rapidly expanding, and this is exciting news for the P&C industry. But with all the hazard data that is being generated, especially during catastrophic events like hurricane and wildfire, comes the need for a more streamlined way to access it.
Data quality and modeling is continually improving—more accuracy, better science, higher resolution—which we have witnessed here at SpatialKey working with providers like KatRisk, JBA, RedZone, Swiss Re, Impact Forecasting, HazardHub, and a host of others for a number of years now.
If you care about what’s happening in the world of property and casualty (P&C), then this is the place to be. Each week, we serve up a bite-size roundup of the latest news, hot topics, and (admittedly subjective) tidbits to keep curious insurance professionals, like you, in-the-know.
2019 is the wettest winter on U.S. record thanks to extreme snowfall and January’s series of storms (the Polar Vortex) costing an estimated $1 billion.
For the Midwest and Northeast, in particular, record low temperatures kept snowpack intact and now spring brings the increased danger of flooding.
More than 200 million people and two-thirds of the 48 contiguous states are at risk and 13 million face major flood risk this spring.
Approximately 25 percent of flood insurance claims in the U.S. are outside of FEMA high-risk flood areas.
To understand actual flood risk and close the flood protection gap, it’s critical for insurers to incorporate flood data beyond FEMA.
As the market continues to become increasingly challenging, having an underwriting and portfolio management platform that includes financial modeling is critical to:
Staying competitive when underwriting new business
Understanding and managing concentrations in order to reduce losses and determine growth strategies
Confidently communicating potential catastrophe losses to management teams
When evaluating analytic solutions, a platform's financial engine should take into consideration terms and conditions that accurately reflect your policy structures, and be fully integrated throughout your organization from underwriting to portfolio management and event response. This way, you’re prepared with the most accurate information for anyone throughout your organization during a time-sensitive event.
Many of the data partners we work with here at SpatialKey are at the forefront of data science, and actively working to innovate modeling approaches to better understand the impact of climate change on flood risk. As carriers, brokers, and MGAs well know, models and their outputs are nuanced, and data providers have different views on climate change and modeling flood risk. That’s why it’s important to have multiple views of risk at your disposal, so you can identify the right models and model components that best represent your lines of business, geography, and business practices.
