The world’s climate is changing and the frequency of storms is impacted by variability in the climate. In 2017, the ABI together with catastrophe modeller AIR Worldwide and the Met Office collaborated on research into UK windstorms. The research considered what effect global temperature increases of 1.5, 3 and 4.5°C would have on the frequency and intensity of UK windstorms.
The research highlighted that temperature increases of just a small number of degrees could lead to a large increase in insurance losses. These increased losses would not be spread evenly across the country but would more likely to be concentrated in Northern Ireland, northern England and the Midlands, with southern England potentially seeing decreasing losses from storms.
This is based on Met Office analysis which shows that even small increases in temperature are likely to shift stronger winds further north. The full report can be found here.
Matt Cullen, Head of Strategy at the ABI, said: “Concerns about global warming often focus on rising water levels and the threat of flooding but this new research makes it clear the impact of other meteorological events such as high winds must not be overlooked.”
Extreme weather events are difficult to predict in advance. However, it is possible through analysis of vast volumes of historical data to understand and highlight the areas that are more at risk. Investing in technology and data models that are based on accurate, up-to-date information and that take account of changing risk patterns to gain a deeper insight into risk is crucial for insurers to ensure they are not selected against or over exposed in high risk areas.
Business Insight has Storm models for both residential and commercial properties. Based on extensive research and the largest source of storm claims information available in the UK, the Storm Insight© models consider the variation in peak wind gusting across the UK together with factors such as topography, urban density, the local built environment and the likely state of repair of buildings to predict annualised loss estimates right down to individual property level. The models have been calibrated using over 72 million windspeed recordings focussed on areas where the UK’s insured population lives and use information supplied by a market leading supplier of weather information to the UK insurance industry.
To find out more, please contact your Account Manager or contact us on 01926 421408.