The Problem
In the political realm, the validity of climate change is still under debate but for insurance companies, there is no question as to the effect of climate change. More frequent and severe weather events driven by changes in climate are increasing costs for companies that provide residential and commercial property insurance. Weather events such as hurricanes and tropical storms intensify in strength every year and increasing drought conditions are sparking more frequent wildfire events.
Higher impact weather events creates more damage to property, increasing paid losses to the insurer. Whether or not climate change is real is no longer relevant to the insurance industry. Operational costs and insurable losses are increasing at a substantial clip as a direct result of intensifying weather and environmental conditions and insurance carriers need a methodology to control and mitigate those rising costs.
For insurance carriers and providers, the key to managing costs and driving profitability lies within the premium the client pays for insurance products. Using technology, insurance companies can mitigate a portion of the risk by adapting a dynamic premium model that reflects the overall potential for weather related losses in the client’s specific region. For the consumer, dynamic premiums may not be entirely understood and increases due to environmental impact will most likely not be well received.
Insurance providers can justify premium increases by assessing, or grading, the client’s specific region with an easy to understand and clear grading system that takes into account specific climate data points for that particular zone. Machine learning loops can quickly take in vast amounts of previous climate data and analyze the likelihood of changes to climate values that could contribute to increasing severe weather activity. A proprietary formula and algorithm combined with a unique ranking system can provide critical information insurance companies need to assess premiums while delivering easy to understand visuals and basis for consumers to understand the what and why of changes to policy costs. ClimAiteTRACK is an all in one AI solution that delivers benefits to insurance businesses through adjusted and appropriately priced insurance products and their clients by offering transparent information that is specific to their region.
The Innovation
Get the Downloads
Reach Out
Use the secure form to the left to get in touch with us.
Copyright 2025 A project by
