The pilot 6 is Embedding Climatic Predictions in Property Insurance Products

This is the Pilot 6 – FAME FreCo Assistance Legal Contingency:

Nowadays, natural disasters and climate change hazards remain mostly uninsured, which is a major challenge for the insurance industry [McKinsey20]. One of the insurance areas that will be significantly affected by climate change is property pricing. Despite the relatively low likelihood of hazardous events, devastating events can cause significant economic damages in real estate properties. The latter are constantly increasing in frequency due to the on-going change in climatic patterns and the absence of strong mitigation measures. Hence, there is a need for novel data-driven insurance services that incorporate climatic parameters in the estimation of insured liabilities, while facilitating climate aware investment decisions.

This is the Pilot 6 FReCo Assistance Guidance:

1) Type of Data: This pilot includes documentation and climate projections, covering temperature and precipitation, as well as historical weather data. Additionally, it seems to include financial data.

2) Data Subjects/Owner of the data: The data is held by Copernicus Climate Change Service.

3) Purpose: Supports climate-aware use cases and aids in the creation of insurers’s portafolios.

4) Legal Obligations: Since the data is held by public secotr entities (service under EU programme), the Open Data Directive and the Environmental Information Directive apply, requiring public access to climate-related data. Additionally, if propietary models are included, Directive 2016/943 may be relevant.

5) This analysis has been conducted based on the work completed in D6.4, and the FAME FReCo Assistance Tool has been used for each pilot.

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