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Spatial Twin tech targets physical climate risks for insurers and asset owners
The Institutes says the “adaptation gap” leaves many risks unpriced, contributing to insurer pullbacks and evacuations even as spending shifts toward net zero.
Risk & Insurance highlights concerns that climate risk planning remains overly focused on decarbonization, while the ability to survive already unfolding climate impacts lags, creating what it describes as an adaptation gap.
According to The Institutes, founder and CEO of Resiliocs Intelligence Moustafa Naiem said traditional consulting often assumes a “climate that no longer exists,” prompting the need for asset-level decision support that quantifies and forecasts physical climate risk costs and how to prevent financial losses.
Naiem also pointed to spending tradeoffs, saying that for every dollar spent on climate adaptation, at least five go toward decarbonization, while people face property losses, insurers withdraw from markets, and evacuations occur because the risk is not fully accounted for, Risk & Insurance reported.
Resiliocs uses what it calls Spatial Twin technology, which relies on satellite data and advanced climate modeling rather than continuous IoT sensor networks, to generate scalable physical risk predictions and adaptation measures with cost estimates and return on investment timelines, according to the podcast episode described by Risk & Insurance.