Perspective | How a Rocket Scientist Is Using Data to Better Define Wildfire Risk

The rapid and unpredictable pace of change in the risk landscape presents risk management and insurance with one of its biggest challenges: How can we transfer risk if we cannot reliably quantify it?

The frequency and severity of natural catastrophes is skyrocketing and creating disruptions in insurance availability. Catastrophe models and insurance rates based on historical risk data struggle to keep pace with fast-changing climate risk.

Insurers are withdrawing coverage from CAT-exposed areas rather than being ‘stuck’ with inaccurate pricing for the risks they assume.

Witness the headline-grabbing moves by large homeowners insurers to stop writing new California property business in June.