This is a taster of an article published in the latest edition of EXPOSURE magazine featuring the new RMS application – SiteIQTM. For the full article click here or visit the EXPOSURE website.
EXPOSURE magazine recently looked at the challenges that underwriters and agents at coverholders currently face, to get comprehensive risk data when evaluating an individual location.
When evaluating single risks, underwriters and coverholders typically have to request exposure analytics from their portfolio managers and brokers, or gather their own supplementary risk data from a range of external resources, whether it is from Catastrophe Risk Evaluation and Standardizing Target Accumulations (CRESTA) zones, through to lookups on Google Maps. But all this takes valuable time, requires multiple user licenses and can generate information that is inconsistent with the underlying modeling data at the portfolio level.
In its recent “Global Risks Report”, the World Economic Forum (WEF) provided a comprehensive analysis of the risks and threats that the world faces, from economic, environmental, to geopolitical. Now in its thirteenth report, each year it publishes tables of the top ten risks in terms of their likelihood of happening, and potential impact. Although “newer” risks such as cyberattacks and data fraud do feature in the top five in terms of likelihood, it is extreme weather events and natural disasters that are in the top two or three in each list. In fact, in the view of the WEF, only weapons of mass destruction are ahead of extreme weather and natural disasters in terms of their impact on the globe. Nat cat events have not always topped the table — maybe the scale of the events of 2017 have brought the impact of nat cats to the fore.
There is also a recognition from the WEF that the failure to adapt and mitigate to climate change is rising as a threat. The World Weather Attribution coalition of scientists stated that 19 trillion gallons of rainfall from Hurricane Harvey that hit the Houston area was three-times more likely to occur due to climate change, and 15 percent more intense.