Power outage risks are on the rise
Electrical blackouts are more frequent and severe, costing U.S. businesses and consumers over $100 billion annually and inconveniencing millions of people.
More than 72% of the total costs of blackouts affect the commercial sector. New technology and tools are essential for insurance, reinsurance, commercial and industrial firms to:
- Assess the financial risk to their U.S. assets from electrical outages
- Manage that risk and
- Plan for rapid response to minimize the effect on businesses and people.
Are you prepared to manage the risks of blackouts to your portfolio?
More volatile weather, an aging electrical grid, transmission capacity limits and other factors are increasing the number and duration of blackouts, causing disruptions and economic losses to grow exponentially.
Until now, the market has lacked a widely available and dependable tool to calculate the financial consequences of power outages, making it more challenging for utilities, businesses and insurance companies to assess potential losses from multiple perils.
Solutions help companies calculate the financial consequences and manage the risk
AER scientists and analysts work with Verisk Climate to provide insurance and energy clients on blackout risk:
- Verisk Climate, AER and HSB strategic alliance to develop technology and services to calculate the consequences of power outages
- AER space weather research initiative to assess the likelihood that a solar storm’s geomagnetic disturbance would interrupt electrical power service in different regions of the U.S. and Canada
- Lloyd’s of London research report co-written with AER: Solar Storm Risk to the North American Electric Grid
For more information on blackout risk, please contact Patrick Pollard at contact us.