EUSPA and EIOPA harness Copernicus data to guide disaster response
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Using data from satellites to predict and resond to climate-related disasters is considered in a new white paper.
The EU Agency for the Space Programme (EUSPA) and the European Insurance and Occupational Pensions Authority (EIOPA) published the joint white paper.
It explores how Earth observation (EO) data could be harnessed to enhance the supervision of natural catastrophes and assess the impact of extreme weather events on Europe’s insurance sector.
As Europe faces escalating climate-related disasters and rising economic losses related to them, the need for more effective risk management and greater resilience against natural catastrophes is paramount — not least through the deployment of innovative solutions.
The white paper is the result of a joint pilot project between EIOPA and EUSPA — highlights the benefits of using open-access Earth observation data from Copernicus to improve the tracking and management of natural hazards.
The project demonstrates that satellite-based EO data offers independent, objective and near real-time geospatial insights that can meaningfully improve risk assessment and risk management practices for insurers, communities and supervisors.
Earth observation technology — especially the open, traceable data that Copernicus provides — can sharpen risk identification, reinforce scenario design and accelerate loss estimates in the aftermath of shocks. Financial supervisors can leverage the technology to:
rapidly identify affected areas and exposed insurance undertakings: Satellite imagery makes it possible to map disaster-affected areas (for example, the extent and trajectory of floods) as events unfold. This granular geospatial data can be matched with Solvency II regulatory reporting to estimate the potential impact of natural catastrophe events on individual insurers (micro-prudential perspective);
estimate overall loss-magnitudes early on by scaling up the micro-level analysis to the sector as a whole (macro-level perspective); and
improve benchmarking, model validation and scenario and stress test design by providing objective, data-driven reference points against which model outputs and reported or calculated losses can be compared.
The collaboration between EIOPA and EUSPA showcases the value of innovation in addressing the challenges posed by climate-related disasters: when used effectively, Earth observation data can contribute to a more resilient and sustainable insurance sector — one that better protects European citizens and businesses from the damaging effects of a warming climate.
