One Concern, a resilience-as-a-service solutions provider with a focus on providing upfront information on potential financial impacts of climate related loss events, has partnered with CoreLogic to use its data and models to enhance its services.
One Concern has a unique approach in using artificial intelligence to try and understand, estimate and forecast the potential implications of climate and weather catastrophes, services which have relevance to the insurance, reinsurance and insurance-linked securities (ILS) market.
By analysing data on economic activity and exposure, along with impact related modelling of possible climate and weather event scenarios, One Concern can deliver upfront forecasts for impact, helping in measuring, planning, mitigation, and also implementing risk transfer against catastrophe events.
The company has now signed a three-year deal with CoreLogic to use its flood, storm surge, wind and climate change data, and flood and wind vulnerability models, to accelerate its artificial intelligence resilience solutions and disaster risk reduction technologies, helping it to better predict weather hazards and climate related effects.
One Concern will use the CoreLogic data and models to pinpoint hyperlocal vulnerabilities ahead of climate threats, while continuing to train its artificial intelligence systems to improve their accuracy as well.
One Concern’s platform could be extremely useful to those in the reinsurance and risk transfer space, including ILS, as it provides insights into risk exposure to climate and other hazards, alongside probabilistic modeling that shows the potential impact on personnel, supply chain and other dependencies.
As a result, it can provide greater visibility of potential natural hazard and climate related impacts, beneficial both for risk protection buyers and those deploying capacity, with potential product-related ramifications as well, as these upfront views of risk impacts could even be used as triggers for insurance, reinsurance, or other forms of risk transfer, in future.
By better enabling society to plan for hazard exposure, through making it easier to understand the possible impacts, One Concern’s products could help to drive uptake in risk transfer, as well as making provision of risk capacity more targeted and risk concentrations better understood.
It’s also interesting to consider how One Concern’s modelling and forecasts could provide the necessary data and insights to underpin innovative risk transfer products around business interruption, as well as help to correlate economic impacts to damage potential.
Technology-led solutions that provide greater clarity of loss impacts and financial costs, for climate and disaster events, can serve to underpin next generation financial protection tools and even parametric triggers as well.
“Amidst worsening natural hazards, enterprises must build resilience strategies for an environment where black swan events are considered normal. As the world looks to face increasing climate risk, we believe ESG should have an ‘R’ for Resilience in order to address these evolving new hazards,” Ahmad Wani, CEO and co-founder, One Concern, explained.
“Through this partnership with CoreLogic, we will be able to make disasters less disastrous by uncovering climate-risk blind spots, enabling communities to address the ripple effects of adverse climate events. CoreLogic’s data will give us a major advancement for data modeling to build the resilience-as-a-service category, while setting the stage for enterprises to operate at the nexus of resilience and sustainability. With unparalleled precision and granularity, we can now identify and plan for resilient enterprises to be sustainable, while also reducing their vulnerabilities from extreme weather caused by climate change,” Wani continued
“Many of CoreLogic’s solutions play an integral role in climate change management, as well as in natural hazard risk and post-event recovery. We continue to provide these dynamic solutions to insurance companies, and this collaboration with One Concern presents a new market for CoreLogic as we help inform resilience strategies,” added Mick Noland, Managing Director – Protect, CoreLogic. “We look forward to establishing more relationships with cutting-edge solution providers like One Concern as we carry out our mission of helping millions of people find, buy and protect the homes they love.”