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Climate Risk Intelligence: Harnessing Data and Technology for Resilience

Updated: Sep 5

Annual Weather, Climate and Catastrophe Insight report (2023) reveals $313 billion in global economic loss from natural catastrophes.

Data shows that 2022 was the fifth costliest year on record for insurers, with approximately $50-55 billion of the global insured loss total resulting from Hurricane Ian in the United States - the second-costliest natural catastrophe in history from an insurance perspective, surpassed only by Hurricane Katrina in 2005, which resulted in nearly $100 billion in insured losses on a price-inflated basis.

While a majority of total losses in 2022 were left uninsured, the 58% "protection gap" was one of the lowest on record, highlighting a positive shift in how businesses are navigating volatility through risk mitigation, and how insurers are providing further protection to underserved communities through access to capital.

In 2022, 421 notable disaster events were recorded worldwide, which is significantly higher than the 21st-century mean of 396. Among these several disasters, droughts and heatwaves severely impacted Europe, the United States, China and other regions. The drought peril was the second highest on record, which resulted in global insurance payouts of $12.6 billion globally.

Catastrophe insights for climate risk data
Catastrophe insights, Aon

Climate risks emerge from complex interactions between hazard, exposure, and vulnerability.

Assessment of these risk elements is essential in order to inform and implement appropriate adaptation measures, prevention efforts, and mitigation strategies. Hence, while a comprehensive standardised database and management system is highly desirable to provide climate risks-related solutions to stakeholders, its establishment is way more complex due to its multi-sectoral, multi-layered requirements across the public and private sectors. In addition, challenges such as complex data management mechanisms, limited capacity of companies to manage multi-source data, underutilisation and under-exploration of the available data, deficiency of useable, clear, and complete data, lack of data standardization, and absence of data on different human, infrastructural, and environmental decisions at the granular local scales make it more challenging.

Moving forward, even though there are ways to tackle these issues, the next step is to establish digital decision support systems and scale them for globally consistent utilization across different sectors. The recent technological developments in terms of AI, Machine Learning, and the emergence of cloud-based digital infrastructure provide promising opportunities for the development of such digital support systems providing location intelligence at the most granular scales globally.

Utilizing the power of these technologies and modelling capabilities, Intensel Limited provides robust solutions and accurate climate risk intelligence to its clients for informed decision-making and climate resilience building under the expected climate and environmental changes.

Intensel translates climate data into tangible asset-specific dollar loss and opportunity. An easy-to-use climate dashboard, reporting functions and client-oriented customized reports will also help to report on disclosures aligned with global standards.

Reach out to our team any time to learn more!

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