Reinsurance giant Swiss Re and One Concern, an AI physical risk company, have announced a strategic partnership that is set to enhance the underwriting and management of nat cat business interruption risk.
The partnership between the two companies will see One Concern’s Business Interruption Risk Scores and Metrics DNA product become available to insurers via Swiss Re’s CatNet® platform.
Swiss Re’s platform provides users with an overview and assessment of natural hazard exposures worldwide. CatNet® also assesses the risk by combining hazard, loss, exposure, and insurance information with selected background maps and satellite imagery.
At the same time, the AI-powered 1C-DNA product leverages catastrophe modeling, graph networks, data science, and foundation models to create a digital twin of the physical world to differentiate properties based on their hidden outside-the-fence risks, which includes power outages, logistics and supply chain, communities.
In addition, the 1C-DNA product is a data-as-a-service toll which provides insights on downtime risk exposure to hazards, as well as extreme weather and natural disasters.
It is very clear that the integration of One Concern’s DNA product into Swiss Re’s CatNet® platform will provide insurers with a more comprehensive understanding of risk, which will therefore enable them to better value, manage and mitigate their exposure.
The partnership between both firms demonstrates a major step forward in the use of technology to manage and mitigate the risks associated with climate change and natural disasters.
Ahmad Wani, CEO and Co-founder of One Concern, commented: “One Concern is thrilled to partner with Swiss Re, a company that shares our commitment to leveraging technology to build resilience against climate change and natural disasters.
“By integrating our DNA product into Swiss Re’s CatNet® platform, we can provide insurers with the data they need to better understand business interruption risk exposure and make more informed decisions that protect assets and communities.”
Anil Vasagiri, Senior Vice President, and Head of Property Solutions at Swiss Re, said: “Swiss Re’s partnership with One Concern allows us to offer our clients an enhanced level of risk assessment so they can better evaluate the risk of operational downtime. By embedding One Concern’s DNA product in our CatNet® platform, we can provide our clients with a comprehensive understanding of concealed, non-damage business interruption risk which continues to lead to substantial claims.”
For the first half of 2023, Swiss Re reported a significant rise in net income to $1.4 billion, which was driven by contained natural catastrophe losses, and a solid performance in all business segments during the period.