Insurers do not need to look back far for a reminder of the need to stay ahead of climate trends. Across a devastating few months in late 2023 and early 2024, the United Kingdom bore the brunt of almost a dozen destructive storms that led to severe floods, at least 13 deaths and millions of pounds in damages to homes and infrastructure. The storm season was officially a record-breaker as the UK Storm Centre deemed 11 storms worthy of ‘named’ status, the highest number of named storms since the 2015/16 season.
Concerningly, this is shaping as ‘the new normal’ according to both insurance and climate experts. New research by Newcastle University and the Met Office has shown climate change will cause an increase in extreme winter storms that combine strong winds and heavy rainfall over the UK and Ireland.
A Wise Investment
Amid such escalating concerns, it is little wonder our annual whitepaper, ‘The Carrier Perspective: 2024 Claims Insights,’ revealed insurers are increasingly acknowledging the need to integrate environmental variables and harness advanced data analytics. Globally, 67% of surveyed insurers asserted a moderate to heavy dependence on data analytics while the figure was slightly higher in the UK, with 70% of respondents indicating a moderate to heavy reliance on data analytics for their risk assessment and underwriting functions.
From studying historical weather patterns and incorporating predictive modelling to determining future premium changes, insurable areas and complex customer hubs, it has never been more important for insurers to invest in climate data analysis.
The Power of Partnerships
The good news for insurers is they do not have to go it alone to lessen the financial and logistical toll of natural catastrophes. Outsourcing to claims management experts is a proven strategy for easing the administrative burden on staff, while partnerships also allow insurers to leverage external expertise, data-driven insights and leading technology. Given our survey found only 43% of UK insurers have implemented significant to transformative organisational adjustments to mitigate the impacts of climate change, there are clearly many firms that would benefit from a helping hand.
Gallagher Bassett has earned a reputation for rising to the challenge both before and after natural disasters strike. With a commitment to elevating and protecting our client’s brands, our experts can provide a comprehensive view of the upcoming hurdles and guide insurers in confidently overcoming them. We can also quickly tap into the company’s global resources to meet the size of what may be an unprecedented local disaster.
Be it supporting claims resolutions, expediting recruitment initiatives or ensuring seamless recovery and timely service for clients – one volatile storm season is a reason to make sure you are prepared for the next, and GB is here to help you and your customers.
Contact us to learn how Gallagher Bassett can help you prepare for the worst and emerge in the best shape possible.
