Meteo Risk Response: A smart approach to manage weather related exposures.
Meteo Risk Response (MMR) provides a strategic competitive advantage by delivering deeper insights into the effect of severe weather exposures on large corporate organizations. A risk assessment at the premises leads to related loss scenarios, such as rising water levels, flash floods or storm surges, etc. Based on historical water level and flood loss data, a probability distribution function of the loss amount due to property damages and business interruption is developed which is used for the estimation of earnings variability due to flood risk exposures. The hydrological modeling of the current and forecasted water level is based on precipitation data from local weather stations and the region’s topology. The forecast of the water level gives early warnings to the corporate risk manager about the current loss estimates and forecasts of earnings at risk at every company location.
Benefits of the approach include:
➢ Most advanced weather stations with hourly data streaming and forecasting.
➢ A dynamic risk management software in a modern web-based solution including risk analytics, incident analysis, quantification of earnings at risk, risk indicator monitoring, alarm notification, and emergency response plan activation, and various modeling and reporting features.
➢ Loss forecasting and risk treatment of natural hazards by elimination or reduction of probabilities and/or severity of losses.
➢ Improved budget planning as well as optimization of reserves and insurance solutions regarding natural catastrophe impacts.
➢ Improved reputation among investors and stakeholders for pro-active risk management.
➢ Supports the commitment to corporate social responsibility and climate change impacts.
➢ Competitive advantage through preparedness and reduced loss potentials.