Climate Change: The Role Of AI In Assessing Natural Catastrophe Risk
Juniper Place recently interviewed experts from the insurance space, regarding the impact of climate change on natural catastrophe events.
Growing demand to account for climate change has resulted in innovative, tech-driven solutions in natural catastrophe (NatCat) modelling. These advances allow the insurance industry to better quantify evolving risk and in doing so, generate enhanced financial and social returns within insurance-linked securities (ILS) and catastrophe bond products.
Assessing risk using Insurtech and AI
The role that climate change plays in the frequency and scale of natural catastrophe and extreme weather events is generating debate and innovative research within the insurance sector. The UK charity Oxfam has been an active voice on climate change since 1986 and has raised concern that the human cost of these events is on the rise. The charity estimates that around 20 million people are forced from their homes annually due to climate related disasters and that adapting to climate change is costing Emerging Markets between $140 to 300 billion per year.