In its 10th year, the Global Insurance Symposium was held last week in Des Moines, Iowa. It brought together insurance industry regulators, executives, and leaders for insightful sessions and productive discussions on elevating digital customer experiences, accelerating transformation, and leading innovation. I was happy to be part of the panel with Dave Stangis, Doug Bujakowski, Charlie Sidoti, and Jonathan Godfread on “Climate Risk: How Insurers Can Weather the Storm.” The discussion could have lasted all day. The panel closed out with the question of what is the most important thing the insurance sector should be considering/factoring into their business models over the next 12 months: Data Integration: Insurers can integrate meteorological data and climate models into their underwriting processes to gain insights into the potential risks associated with specific geographic areas. This includes historical weather patterns, climate projections, and other relevant environmental data. Risk Assessment Tools: Developing advanced risk assessment tools that incorporate meteorological data and climate models can help insurers evaluate the potential impact of extreme weather events on their portfolios. These tools can provide a more comprehensive understanding of the risks involved and help insurers make more informed underwriting decisions. Scenario Analysis: Conducting scenario analysis based on climate models allows insurers to assess the potential impact of different climate scenarios on their portfolios. By simulating various weather conditions and their effects on insured properties, insurers can better understand the range of potential risks they face and adjust their underwriting practices accordingly. Tailored Pricing and Coverage: Using meteorological data and climate models, insurers can develop more tailored pricing and coverage options for policyholders based on their specific risk exposures. This can help ensure that premiums accurately reflect the level of risk associated with a particular property or location, ultimately leading to more sustainable underwriting practices. Collaboration with Scientists and Researchers: Insurers can collaborate with meteorologists, climatologists, and other scientific experts to enhance their understanding of climate risks and improve the accuracy of their underwriting models. By leveraging the latest research and data-driven insights, insurers can stay ahead of emerging climate-related challenges and adapt their underwriting practices accordingly. Investment in Resilience Measures: Insurers can also invest in resilience measures aimed at mitigating the impact of extreme weather events on insured properties. This could include promoting risk reduction initiatives, encouraging the adoption of sustainable building practices, and incentivizing policyholders to implement measures that improve the resilience of their properties to climate-related risks. #GIS2024 #Insurance #Reinsurance #ClimateChange
Last week, members of our BMS Re team had the pleasure of attending the 10th annual Global Insurance Symposium in Des Moines, Iowa. Our very own Peril Advisory lead and Senior Meteorologist, Andrew Siffert, CCRMP, participated in a panel with Dave Stangis, Doug Bujakowski, Charlie Sidoti, and Jonathan Godfread on “Climate Risk: How Insurers Can Weather the Storm.” The discussion focused on the increasing frequency and severity of weather events, including how insurers can leverage meteorological data to assess and mitigate risks in their underwriting process. #GIS2024 #liveevent #reinsurance