Lockton Re has launched an innovative digital hub aimed at enhancing research and analytics under the leadership of Claude Yoder. This initiative is set to redefine how the reinsurance industry addresses storm dynamics and risks associated with climate change.
Short Summary:
- Lockton Re introduces a comprehensive research series on storm dynamics impacting the reinsurance sector.
- Claude Yoder emphasizes the need to understand climate changes affecting storm predictions.
- The initiative includes extensive follow-up publications analyzing building resilience and risk transfer options.
In an exciting development for the reinsurance landscape, Lockton Re has unveiled its digital hub dedicated to initiating a series of detailed research publications on storm dynamics, all under the strategic leadership of Claude Yoder. As the Global Head of Analytics at Lockton Re, Yoder brings a wealth of experience and a visionary approach to understanding the increasing complexities surrounding climate-related risks and storm behaviors.
“Underlying climate-related changes are making it challenging to predict storm dynamics. Past focus on frequency and severity of storms may have missed more fundamental global climate changes,” Yoder stated, highlighting the urgent need for a modernized approach in the field.
Lockton Re’s project launches with the first research publication entitled Storm Dynamics and The Reinsurance Industry, which focuses on the peril of hurricanes, tropical cyclones, and typhoons. This publication examines patterns and trends that not only define these storm occurrences but also delve into how shifting climates could substantially alter future projections.
Cheryl Fanelli, the Global Head of Catastrophe Modeling for Lockton Re, added, “We’re seeing an uptick in the strength of these storms. Take the 2022 hurricane season, which was average in terms of hurricane activity in the North Atlantic, yet it was the third costliest on record.” This observation underscores the evolving nature of storm impacts, challenging traditional risk assessment methodologies within the insurance realm.
Yoder’s insights extend into the implications of storm dynamics, emphasizing that wind speed alone has become an inadequate predictor of damages. The interaction of climatic variables, such as increased precipitation and heightened storm surges, has made even lower categorized storms capable of causing significant financial losses. This realization necessitates a shift in how the reinsurance market approaches risk management.
The research series won’t stop at just one publication. Lockton Re plans to release three additional follow-up papers, each targeting different critical aspects of storm resilience and predictive analytics:
- Assessing the industry’s exposure to hurricanes.
- Understanding the resilience of modern home and building structures in response to storm threats.
- Innovative risk transfer options and the evolving techniques within the property (re)insurance market.
These publications aim to provide industry stakeholders with actionable insights and advanced analytical tools essential for navigating the complexities of climate change and the reinsurance landscape.
“Wind speed alone is no longer a good predictor of damages. As climate change has increased precipitation and made storm surge more likely, even lower categorized storms can create material loss,” concluded Yoder, stressing the need for a nuanced understanding of storm characteristics.
By investing in this digital hub, Lockton Re demonstrates its commitment to pioneering advanced analytics and data capabilities that cater to the reinsurance sector’s pressing needs. The company’s robust analytics team comprises technologists, actuaries, data scientists, and catastrophe modelers, ensuring that their approach is comprehensive and contemporary. This initiative will also enhance Lockton’s service offerings, creating significant improvements in risk understanding and management for clients navigating an unpredictable climate.
Ron Lockton, CEO of the company, mentioned, “Our commitment to evolving with climate challenges and sharing knowledge through this hub is fundamental to creating better outcomes for our clients and partners.”
With the launch of the digital hub, Lockton Re is not merely addressing immediate industry trends; they are setting a foundation for the future of reinsurance, which increasingly hinges on understanding and adapting to changing climatic conditions. The hope is that this new suite of publications becomes a reference point for the entire reinsurance industry, providing tools that will allow for more accurate assessments of risk and, hence, create capacity and capital flexibility.
The underlying philosophy of this initiative aligns perfectly with the broader trends towards enhanced data analysis and the application of artificial intelligence (AI). For those interested in following AI’s influence on article writing and technology within the broader industry, you can explore resources available on Artificial Intelligence for Writing.
In conclusion, as the urgency around climate change accelerates, Lockton Re stands poised at the latest intersection of risk management and technological innovation, driven by insights from leading experts like Claude Yoder. With their digital hub and dedicated research, the goal remains clear: fortify the reinsurance industry’s capacity to face the future head-on, equipped with knowledge, agility, and integrity.