The increased frequency and severity of disastrous natural catastrophes ( natcats ) is exerting both a human cost and significant amounts of insured losses , presenting an existential threat to insurers . The entire insurance sector relies on strong data from the outset , so volatile and unpredictable risks seriously hamper the industry ’ s ability to thrive .
Natcats are a risk both in terms of property insurance – freak weather events like storms , floods and earthquakes often leave millions of dollars ’ worth of destruction in their wake – as well as agricultural insurance , wrecking crops and making it harder for growers to earn a living from one season to the next .
One of the most championed risk technologies , which could potentially help insurers mitigate against the mounting threat posed by climate change , is satellite observation and aerial imaging . It ’ s not a new concept ; it is , after all , the same underlying technology that connects our smartphones and powers Google Maps .
But adoption has traditionally been limited among insurers , due to the high cost associated with satellites . But all of that is changing . Reijo Pold , Founder & Chief Strategy Officer at Value . Space , explains : “ Historically , satellites have been used selectively across the insurance spectrum due to high costs , with post-catastrophe analyses being the well-known use case to date . Now , we are seeing a surge in claims and losses globally that are primarily driven by changing climate patterns , that is pushing already brittle infrastructure to breaking points .
“ This is also starting to inflict damage to properties and cities on a large scale as well . Insurers today want to analyse risk ahead of time to make more accurate decisions
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