REACT Property

One platform to manage your global portfolios in real time

Proof your business against natural disasters

Earthquakes, floods, hurricanes, droughts, tsunamis and tornadoes: the power of nature to unleash catastrophic events is without question.

Because of the ongoing scale, frequency and uncertainty associated with these events, the insurance industry has struggled with post-loss data collation, a crucial component of a fast and efficient claims settlement. This lack of data has resulted in loss payment delays due to an inability to access loss quantum. This delay results in industry-wide loss creep, creating uncertainty in financial reporting.

Global economic losses arising from natural disasters averaged USD 124 billion over the last ten years, with a long-term average of 36,570 lives lost per year. There are typically 280 major natural disaster events worldwide per year, with flooding being the deadliest peril.

Marine EO

What is REACT

REACT’s new and emerging Earth Observation (EO) technology supports the insurance industry and Disaster Risk Management (DRM) sectors in evaluating natural catastrophes and exposure.

REACT supplements existing capabilities utilising real-time, pre and post-loss, high-resolution satellite imagery and data.

REACT, an EO-based web service delivers innovation drawing on multiple EO satellite sources. Instrumentation and satellite operators to tailor and combine insurance Cat models with real-time EO information. Real Earth integrates weather and other forecast data to help prioritise geographic areas for the analysis of EO data.

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There is a range of users of the platform:

  • Insurance (indemnity and parametric) – Claims, exposure management, underwriting
  • Modelling firms serving the sector
  • World Bank or IDF engaging with sovereign governments

A unique solution providing services not currently available

Real-time loss assessment requires a view of damage during and immediately after an event. This view can be used to assess the building stock, infrastructure and population (‘exposure’) that exists within the flooded area.

Cat model development and validation requires the comparison of modelled event footprints with historical flood footprints, particularly for extent, depth, duration, seasonality, and frequency of occurrence at a location.

Predictive models used can be validated and calibrated via a feedback path in the post-analysis. After an event, initial modelling predictions and associated data are compared to the eventual outcome for loss measurement and event impact. If predictions correlate with the results, the model is verified. If not, the model may be adjusted and re-run against the initial data set for testing and calibration to improve the model for future use.

The data and analytics provided will allow claims professionals to manage and adjust claims remotely, in some instances making early payments to policyholders.

EO satellite data and imagery in the claims process will assist in the initial triaging of loss. They can use them to mobilise third-party service providers and support organisations. In instances of total catastrophic loss, claims can be settled as soon as verified based on EO sourced evidence. REACT provides a shared services platform to multiple organisations, significantly reducing the entry-level cost of real-time flood mapping and claims verification services.

Parametric risk financing schemes require real-time, accurate and trusted data at a given location to trigger such contracts. REACT provides a transparent audit trail/workflow process associated with these contracts to validate data and event triggering. However, human intervention is required to trigger the actual confirmation parametric event.

Users can create alert conditions based on their portfolio or regions. Alerts are triggered once a specified type of event occurs; risk value goes above a certain threshold; the number of properties are affected, etc. The REACT platform then automatically checks these parameters regularly and frequently for the duration of a significant event. When conditions of an alert are reached, REACT will notify the user.

Adoption of REACT will mean:

  • Real-time event analysis
  • Improve data availability
  • Increased transparency in cause analysis
  • Increased efficiency in claims assessment and ultimate settlement
  • Reduce/ remove the mis-factor associated with pre and post-loss assessment
  • Introduce a greater degree of stability to quarterly earnings reports
  • Better provision and access to data has the potential to open up new insurance markets
  • Bridge the protection gap in less-developed economies that are prone to natural catastrophes
  • The shared service is available to developing countries to manage natural disasters

One platform to manage your global portfolios in real time

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