Asia-Pacific is experiencing an alarming increase in weather events, in both their frequency and severity. This escalation calls for better data to effectively address the complex challenges confronting the region, Darryl Pidcock, head of Perils in Asia-Pacific, told SIRC Today.

“In Asia-Pacific, there are many markets and perils where there is still a lack of reliable industry data,” he said. With the upward trajectory of weather event severity, this data deficit might could become a major problem. More weather events mean more risks. But without solid data, how will the industry prepare or even understand these risks?

While there’s a basic understanding of exposure in the region, it’s not enough, Pidcock noted. “There is some understanding of exposure but because it is growing and evolving, especially with development and urbanisation, it needs a lot more resources and attention.

“There’s still more to go. With any modelling, the importance of reliable data is the vital piece.”

AI to the rescue—perhaps

It’s not just about today’s challenges. Pidcock warned of the increasing frequency of natural events in many parts of the region, implying that potential insurance losses could shoot up.

What is the solution? According to Pidcock, technology, particularly artificial intelligence (AI), might potentially come to the rescue. He’s hopeful about AI’s potential in pooling various data sources more efficiently.

“The industry is still working on how to use AI to its benefit, but the power lies in bringing various data sources together,” he said.

The industry needs to gather more, but also better, data to understand these growing risks, he highlighted. And while understanding past exposures and losses is vital, the journey to bridge the data gap is long. “It’s a journey, and it will take time,” Pidcock said.

On a related note, last year Perils extended its market coverage to include exposure and event loss data for wind and flood in Japan, covering the non-life market. It captures event losses caused by wind and flood that generate non-life industry losses of JPY 100 billion or more.