ICEYE: Sizing flood losses with accurate observation data
A new ebook from ICEYE, available to download here, explores the art of the possible for (re)insurers.
The major floods of 2021 were a reminder of the growing influence of extreme weather events on society and global economies, and the ongoing challenge for the insurers in attaining accurate loss numbers immediately following a natural disaster.
Nowhere was this issue more evident than the European Floods of July 2021. These floods did not just cause major disruption to policyholders, they also resulted in serious damage to properties and tragic loss of life.
It is at times like these that communities and policyholders most need the insurance industry to fulfill its contractual obligations and deliver on its societal value. In these moments, the level of service expected by policyholders could not be greater. Rising to this client service challenge is made all the more difficult given that, in the aftermath of large events, (re) insurers are working under heightened scrutiny from capital providers, regulators and governments.
The value of fast and reliable data is therefore hard to overestimate. Whether it is knowing which clients need most urgent support, or whether it is ensuring communications with stakeholders are unequivocal, the need for comprehensive and robust information is paramount.
This eBook – available to download here – has three objectives. First, it attempts to unpack the challenge of sizing losses post-event. Second, it explains why traditional methods fall short. Finally, it explores how a new class of world-monitoring solutions can deliver unprecedented insights, enabling (re)insurers to base their decisions on near-time, accurate observation data that has hitherto been unavailable.
The ability to accurately size losses based on observation data presents a significant opportunity for the industry. The benefits range from more accurate reserving and smarter outwards purchasing to insight-led decisions on resource allocation and claims settlement. Indeed, if properly harnessed, these insights can ultimately improve underwriting and inform product development. As a pioneer in providing near real-time flood loss numbers, ICEYE is dedicated to working with its (re)insurance industry clients to unlock this potential.