Following catastrophic flooding occurrences in Japan, Aon plc cooperated with satellite and persistent monitoring expert ICEYE to give insurers with flood hazard data, allowing them to decrease volatility and better comprehend the post-event impact on their portfolios.
According to the Japan Meteorological Agency (JMA), Japan receives three typhoon landfalls on average each year, as well as multiple flood disasters.
Three of the five worst wind and flood insurance losses in Japan’s history occurred in 2018 and 2019, with insurers resolving claims totaling more than $30 billion during the two years.
To provide near real-time insights on the probable repercussions of flood occurrences, the satellite solution integrates ICEYE’s synthetic-aperture Radar (SAR) data with Aon’s digital building datasets developed using Aon’s patented technology.
This enables insurers to analyze the possible impact of a flood on their portfolio within 24 hours of the water’s peak, allowing them to improve their reserving and claims handling processes.
“Aon and ICEYE share a view that better data leads to better decisions and, in turn, better results,” said Rupert Moore, CEO of Aon’s Reinsurance Solutions in Japan.
“As we negotiate this type of volatility, our work with ICEYE intends to assist clients in enhancing the resilience and precision of their responses to flooding occurrences in Japan.”
“With more information and insights, the combination of ICEYE’s technology and Aon’s buildings database gives a unique and novel solution for them to better address any claims post-flooding in the country.”
“Both of our firms have a laser focus on helping insurers reduce their combined ratios, improve their service to policyholders, and close the protection gap,” said Rafal Modrzewski, CEO of ICEYE.
“ICEYE and Aon’s collaboration illustrates our commitment to assisting clients in leveraging innovations that provide strategic value.”
“Together, we’re allowing the kind of digital transformation that will improve the insurance industry’s efficiency and customer service.”