Insurers are betting on a suite of new AI-driven techniques to better predict surging losses from climate-driven weather catastrophes ranging from unprecedented wildfires to hurricanes and floods.
Less than three months into the year, natural disasters are already causing major economic disruption around the world, including recent fires across Los Angeles, an economy-denting cyclone in Australia, floods in Jakarta and a giant storm that left dozens dead in the US. According to a recent report by broker Gallagher Re, annual insured catastrophe losses of $150 billion have become “the new normal.”
While traditional models apply complex physics and ...