storm on September 29, 2023 in the Flatbush neighborhood of Brooklyn borough New York City. Extreme weather driven by climate change is causing headaches for insurers as pay-outs continue to rise. Norway-headquartered flood intelligence company 7Analytics has raised €4 million, in a seed round led by Scale Capital, to scale its AI-led high precision flood and landslide prediction models, in the hopes of enabling provision of insurance cover in high risk areas.
Torland says: “Flooding has the highest economic impact on society in terms of natural disasters, yet insurers are leaving flood prone areas because they lack adequate risk data. Through our solutions, we are giving insurers data that accurately assess the specific risk of each property.
Increased payouts have a knock-on effect on the insurance industry and the cost of premiums. As Moses Ojeisekhoba, Swiss Re's chief executive Global Clients & Solutions, said:"As weather hazards intensify due to climate change, risk assessment and insurance premiums need to keep up with the fast-evolving risk landscape."Severe thunderstorms have become established as the second-largest loss-making peril due to exposures caused by urbanisation and economic and population growth.