Data should be seen as an asset that can help organizations more thoroughly understand their exposures, both now and in the future, according to Andreas Berger, Zurich-based CEO of Swiss Re Corporate Solutions, part of Reinsurer Swiss Re Ltd.
Because of legacy systems and siled data accumulated through countless mergers and acquisitions, “data and technology is probably one of the biggest problems we have in the insurance industry,” Berger said during a Monday session at Riskworld, the Risk Insurance Management Society Inc.’s annual meeting in Atlanta.
Berger cited as an example thunderstorms, which, while not as intense and severe as hurricanes, can still cause significant damage. He noted that in the first quarter of the year alone in the United States, “we̵
7;ve already had $7 billion in losses” due to thunderstorms.Such secondary hazards represent a “blind spot” of exposures because they have not been widely modeled, he said.
Tracking data such as population growth can also lead to insights about exposures, Berger said.
For example, the population living in the landfall footprint of Hurricane Ian, the fall 2022 Category 5 storm that hit the U.S., has increased 600% since 1970. Such value accumulation is driving loss growth, Berger said.
Looking ahead, Berger said climate change may bring new exposures that will require new data to understand and mitigate.
Heat waves and droughts may join thunderstorms and hail as hazards that need to be mitigated and will therefore require data collection and analysis.
“Climate change requires forward planning,” Berger said.
Source link
