Citation:

Devidas Kanchetti, 2021. "Climate Change and Insurance: Using Predictive Analytics to Navigate Emerging Risks", ESP Journal of Engineering & Technology Advancements 1(1): 184-194.

Abstract:

Global warming is considered one of the main factors that affect the insurance business and calls for new Creative and Effective Insurance Risk Management. Specified climate-related events, including hurricanes, floods, and wildfires, have upgraded the traditional underwriting criteria and claims management consequently, due to the rising frequency and severity of numerous natural dangers. Paid losses have risen sharply, and this has underlined the need for the insurers to advance their methods of assessment. In this context, profitable use is of predictive analytics in which historical data is analyzed along with sophisticated statistical models to determine changes that might occur in future in relation to climate change risks. Through the use of data mining, learning machines, and geographical information, insurance companies will be in a position to identify certain risks which are potential and emerging dangers. This paper aims to investigate the role of predictive analytics in insurance industry decision-making with reference to risk profiling, premium setting and claims processing. Through these technologies, insurers can enhance process effectiveness while at the same time creating better and more sustainable business processes with the integration of climate change challenges.

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Keywords:

Climate Change, Insurance, Predictive Analytics, Risk Management, Sustainability.