Swiss Re Advocates for Advanced Data Utilization to Bridge the NatCat Protection Gap

Swiss Re Group’s CEO, Moses Ojeisekhoba, recently highlighted the critical role of data-driven insights in addressing the escalating challenges posed by climate change, particularly in the realm of natural catastrophes which have seen insured losses consistently topping USD 100 billion annually. In a discussion with journalists, Ojeisekhoba referenced findings from the Swiss Re Institute’s sigma report, which noted that global insured losses from natural catastrophes doubled over the past 30 years and are projected to double again in the next decade. This trend underscores the widening NatCat protection gap, where only about a third of economic losses from such catastrophes were covered by insurance last year.

The increasing frequency of severe weather events, including storms and flooding, is expected to drive future insured losses, prompting concerns about the potential for regions to become uninsurable. Swiss Re’s approach involves leveraging over 200 terabytes of curated risk data and sophisticated models to assist insurers, businesses, and governments in understanding and preparing for these evolving risks. By integrating historical data, satellite imagery, and meteorological information, Swiss Re helps clients pinpoint hidden risks within their portfolios and make informed decisions about property risks.

The re/insurance industry, according to Ojeisekhoba, plays a vital role not only in mitigating climate risks through investments in climate-positive projects but also in adapting to unavoidable climate impacts. This proactive, data-informed strategy is essential for ensuring that insurance remains accessible and affordable, even as our climate continues to change.