Christopher McDaniel, president of the Institute’s Catastrophe Resiliency Council (CRC), told AM Best at the Global Insurance Forum in Miami that data-related challenges are key obstacles to the insurance industry's efforts to address climate and catastrophe risks.
McDaniel emphasized the fragmented nature of global initiatives aimed at tackling climate risks. He noted that while many organizations work on solutions, their efforts are often disconnected.
"One of the biggest challenges that we have out there is trying to bring together these various collaborative efforts that are going on so that we can talk with one voice," he said.
McDaniel argued that quality, quantity, and data integration are critical issues that need to be considered.
Projections on climate risk often rely on limited datasets, he explained, underscoring the need for more robust and comprehensive data sources. According to McDaniel, combining disparate datasets is essential for accurately assessing risks, such as the impact of hurricanes, and understanding factors like infrastructure vulnerability, economic impact, and historical preservation.
“We need better data,” he said. “We need better quality data and we need better quantities of data.”
McDaniel also addressed the importance of public-private collaboration. He cited organizations like FEMA and NOAA, which conduct extensive research, as critical partners in creating a complete picture of catastrophe risks. However, he noted that public sector data often exists in silos, separated from private sector datasets.
"If we want to get a complete picture, be able to [make] accurate projections of what the impact is or [of] catastrophes in climate risk, we've got to bring private and public together," he said. "It's too big for one to do by themselves."
McDaniel outlined a twofold approach to improving resilience. First, centralized data systems are needed to consolidate and analyze diverse datasets. Second, initiatives and projects addressing catastrophe risks should be coordinated to avoid redundancy and foster collaboration. He stressed that such a model would enable stakeholders to access data and resources more effectively, promoting unified action.
“The ideal model is kind of twofold. You have to have a way of bringing all of that data together and being able to look at that data,” McDaniel stated.
As the insurance industry grapples with increasing climate challenges, how can public and private entities better collaborate to ensure effective disaster preparedness? Share your thoughts below.
