{"id":650782,"date":"2024-02-13T05:49:45","date_gmt":"2024-02-13T13:49:45","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&p=650782"},"modified":"2024-05-10T05:17:12","modified_gmt":"2024-05-10T12:17:12","slug":"insurers-uncertainty","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/insurers-uncertainty","title":{"rendered":"Climate Risk Analytics: The Key to Sustainable Insurance"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[333782,471742,1641,281,177152],"department":[488812],"wherenext-category":[],"industry":[],"class_list":["post-650782","wherenext","type-wherenext","status-publish","format-standard","hentry","tag-business-resilience","tag-climate-risk","tag-insurance","tag-location-intelligence","tag-predictive-analytics","department-emerging-technologies"],"acf":{"short_description":"Some insurers are resorting to drastic measures as the cost of indemnity rises. Others are honing their ability to see and price risk. ","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"The insurance industry earned a spotlight at the 28th United Nations conference on climate change (COP28) in late 2023. Prominent global figures<\/a> and business leaders<\/a> alike spoke to the need for sustainable, equitable access to protection from climate risk. They warned that lapses in personal or commercial insurance could disrupt livelihoods and lines of business\u2014and in turn jeopardize entire economies."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"Snapshot:<\/strong> With natural disasters on the rise and asset replacement costs mounting, insurers face a delicate choice\u2014get out of certain areas or get better risk visibility.","snippet":""},{"acf_fc_layout":"content","content":"Recent events underscore the challenge. Over the last 30 years, the annual average for natural disaster losses covered by insurance was $57 billion, according to Reuters<\/a>. In 2023, the total was $95 billion, according to Munich Re.\r\n\r\nInsurer Aon<\/a> pegged 2022\u2019s total at $132 billion. Even more startling: That amount was just 42 percent of total losses\u2014the rest were not covered by insurance. Aon calls that one of the lowest coverage rates on record.\r\n\r\nInsurers, already adept at understanding local risk and calculating the costs of protection, will need more precise risk visibility to accurately price policies in regions plagued by worsening climate hazards\u2014from deadly heat events in Europe to property-leveling wildfires in North America.\r\n\r\nIt\u2019s an urgent, complex challenge, but insurers might already have what they need to tackle it: location technology. Geographic information system (GIS)<\/a> software, already used throughout the industry to digitally map portfolios and assess property conditions, is also a powerful tool for climate risk analytics<\/a>.\r\n