Cloudy with a chance of mishap
How weather data can help insurers manage risk and drive client value
Insurance companies understand the importance of weather data; for years, the industry has incorporated historical weather patterns into its underwriting and pricing models. However, advances in weather science, analytics, geolocation and cloud computing now enable insurance companies to apply weather-related insights in new, innovative ways. Weather data can help insurance companies work more effectively with customers to mitigate weather-related claims, allocate internal resources to better assist customers with post-event support and more effectively manage cash reserves. These advances not only improve operational effectiveness, but also build tighter bonds among customers, agents or brokers and organizations.
This executive report identifies opportunities for insurance companies to use weather data as an important asset in both managing operational and financial risks, as well as improving customer relationships. It also explores how companies can start using weather data in their day-to-day operations and considers future directions in the use of weather-related information for insurers.