Publish Date: June 4, 2013
Article Source: Bloomberg BNA
Article Link: www.aer.com/news-events/in-the-news/2013/billion-dollar-decisions-held-poor-use-climate-data-insurers-say
Bloomberg's Avery Fellow spoke with AER, Zurich Financial Services and Computer Sciences Corp., on the importance of detailed weather and climate data to make better business decisions in insurance, energy, commodities and agriculture. According to Kyle Beatty, Senior Vice President at Atmospheric and Environmental Research (AER):
"Insurance companies are actively looking for more detailed weather and climate data to help make decisions. Property and casualty insurance companies have asked AER and 11 other companies to conduct research on tornado and hail frequency in Canada and the United States.
" 'Since the 1980s, there are fewer days annually on which tornadoes occur, but on the days that tornadoes do occur, they are “explosive and catastrophic.' The group is finding that the risk is changing.'Large tornado outbreaks are becoming the norm.' The roundtable is documenting these changing risks for the property and casualty insurance market.
"The research will be used to develop risk assessment tools to help insurance companies set premiums and make other decisions."
Read the full article at Billion-Dollar Decisions Held up by Poor Use of Climate Data, Insurers Say