Insurance Weather Analytics in a Changing Climate
Climate change is not a new phenomenon. For thousands of years, cyclical climate change has created and ended ice ages and reshaped oceans into deserts. But today’s climate change – the man-made environmental changes that have occurred over the past 100 years – is the focus of “Billion-Dollar Storms,” our whitepaper that explores the effects global warming will have on the insurance industry in the coming years.
Environmental Factors Associated with Climate Change
The evidence for man-made climate change is overwhelming, and insurance carriers must heed the warning signs and begin to adjust business practices to account for these significant changes:
- Higher Temperatures: Some studies show Earth’s average surface temperature has risen about 1.62°F (0.9°C) since the late 1800s, driven largely by increased CO2 and other human-made atmospheric emissions. Most of the uptick has occurred in the last 35 years; the seven warmest years on record have occurred since 2010.
- Changing Oceans: NASA climate scientists report that the oceans have absorbed much of the increased atmospheric heat, with the top 2,300 feet showing increased temperatures of more than 0.4°F since 1969. The acidity of surface ocean waters has increased by about 30% since 1950 because of excess CO2
- Extreme Conditions: Floods have become larger and more frequent in rivers across the Northeast, Midwest, Pacific Northwest and northern Great Plains; yet from 2000- 2015, up to 70% of the U.S. experienced conditions that were abnormally dry.
Modern Solutions to Manage Risk Scoring, Forecasting and Forensics
The insurance industry needs tools built on better weather data to prepare for the increasing frequency of severe storms. These tools produce actionable insights and help prepare for and recover from severe weather losses.
At Athenium Analytics, we offer cloud-based advanced weather assessment software to forecast your future:
- Atlas offers instant access to granular historical and forecast weather data featuring more than 250 variables across 40 years.
- Dexter is a web-based weather and natural hazard forensics dashboard that offers hyper-local resolution and nationwide peril coverage.
- Beacon is a global weather forecasting alert platform that pinpoints local weather events and triggers emails based on custom thresholds.
- Gauge is a cloud-based risk management dashboard that helps underwriters assess natural hazard risks, map exposures and visualize portfolio risk.
- IRIS is an AI-enabled imagery analytics solution that delivers automated property risk insights using high-resolution aerial imagery.
Learn how climate change is making insurance weather analytics more essential than ever. Download your free copy of the “Billion-Dollar Storms” whitepaper now!
Are you ready to evolve your insurance business? Contact our expert sales consultants today to get started on the right-sized solution that fits your business needs. Forecast your future with Athenium Analytics.