By Caroline Elliott-Grey, senior product manager, U.K. and Ireland, LexisNexis Risk Solutions, Insurance
Although recent studies indicate that there hasn't been a significant increase in windstorm frequency or intensity in the UK over the past few decades, the winds of change are blowing and future projections suggest a potential rise in the severity of such events due to climate change. Moving forward, insurance professionals will need to use all the geospatial intelligence tools in the box to help them understand changing perils.
Extreme winter storms may become the norm
Taking a look at some of the most recent research into climate change related weather underlines the fact strengthening geospatial intelligence data usage to tackle rising property risks is imperative. Historically, the UK State of the Climate report notes no compelling trends in storminess when considering maximum storm gusts over the last four decades . Projecting forward however, research led by Newcastle University and the Met Office indicates that climate change could cause an increase in extreme winter storms combining strong winds and heavy rainfall over the UK and Ireland . Meanwhile Nature Communications suggests that storm frequency could increase across northern and central Europe, with the meteorological storm severity index more than doubling .
So, as an insurance provider, knowing when a storm is coming and what it is likely to ‘hit’ is becoming increasingly important, not only to mitigate the risk of an incoming storm, but also to help pricing accuracy. Indeed, the use of targeted geospatial intelligence data at point of quote through data enrichment, is helping the insurance industry to identify properties that could be at risk.
Windstorm modelling
A great example of how insurance providers are harnessing data is their use of windstorm modelling to help identify customers at most risk from imminent or future wind-related storm damage. With five named storms already this winter, UK homeowners are all too aware of what havoc rogue wind gusts can cause in the midst of a storm. That is why the LexisNexis® Risk Solutions Windstorm Model uses maximum wind gust speeds as a better predictor of property and structural damage, compared to sustained wind speeds.
Windstorm modelling, using average speed of wind gusts allows insurance professionals to predict damage to roofs from those dangerous gusts, as well as predicting damage from trees falling onto properties. Knowing for instance, whether a property faces prevailing winds and is exposed on the top of a hill, not in shelter, are vital considerations insurance providers need to make when assessing storm risk.
Roof risks
Vitally, insurance providers can access this level of information alongside property characteristics data such as roof type and number of floors, through one gateway rather than calling out for data from multiple sources. This streamlines what would otherwise be a complex process risk assessment process to support more informed underwriting decisions.
Seeing the wood for the trees
Using windstorm modelling together with tree mapping data puts insurance professionals at an even greater advantage. Imagine the scenario above where a provider is quoting for a property in an exposed area, prone to wind. Knowing the location, canopy cover and height of trees 3 metres and taller in the proximity of the property they are quoting on could be invaluable in helping the insurance provider price a policy realistically and fairly.
Going underground
Storms often bring heavy rain too, which can lead to overflowing rivers and inland flooding, even away from the coast. Again, using windstorm modelling combined with detailed knowledge of whether a property has a basement or the like can help at point of quote as well as in the eye of the storm. As a storm approaches, insurance providers who know that a property which is at risk of windstorm also has an underground level, could even warn that policyholder and help them mitigate risk as events unfold.
Forewarned, the policyholder can implement damage prevention strategies, including taking furniture and valuables to higher levels of their home, or using sandbags to help prevent water ingress.
Exposures and accumulations uncovered
As extreme weather events become increasingly common, the use of geospatial intelligence such as windstorm modelling can also play a crucial role in helping insurance providers manage their overall accumulations. Providers now have the ability to map and visualise how a storm could impact an entire book of business using live data to track the path of the storm. The latest geospatial mapping technology offers a comprehensive view of individual property risk, the risk of a drawn location or across a whole portfolio. This enables insurance providers to upload their policy data to see where there are accumulations of risk and understand their exposures as a storm unfolds.
As we head towards Spring and the prospect of calmer weather, there is no escaping the fact that our climate is changing. This brief look at geospatial intelligence data has demonstrated the power that insurance providers already have at their fingertips to mitigate risk. Windstorm modelling combined with granular data on the build type, structure and location of a property can help the insurance industry gain a deeper understanding of the possibility of a windstorm related claim for fairer pricing.
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