Page 20 - Insurance Times August 2021

assessment software. GIS uses its vast database and By overlapping information of the insured with the damage
mathematical algorithms to analyze spatial locations and caused by the cyclone over a map, the insurer can get a
portrays the output in visual data. clear idea of the number of claims expected. This will help
the company to be well-prepared in the disbursement
This data is spread over maps so patterns and relationships process and provide relief to the insured.
can be assessed. With the help of this data, different zones
can be created over a map depending on the potential risk The insured will appreciate this action taken by the insurer
they possess from calamities like floods, landslides, and of swiftly disbursing the funds, helping them rebuild their
cyclones. These zones can be strengthened against the assets, and getting the business back on track as soon as
threats they may encounter by implementing the necessary possible.
pre-disaster strategies. GIS is used for risk assessment
because of its near-accurate capability of predicting natural Y Emergency planning:
phenomenon's like storms, cyclones, and floods. Natural disaster impacts most part of the globes and the
destructions caused by them are inevitable, and to respond
Y Identify risk potential for assets in cyclone- to these challenges caused by the unexpected disaster is
prone areas quite difficult. GIS based location-based system can be used
exponentially to cope up with such challenges that occurred
Asset owners in risk-prone areas insure their properties through natural disasters.
against damage caused due to natural calamities. Asset
owners can take informed decision on location of the Y Identification of probable affected area:
property, designing the structure loss prevention and
business continuity. Insurance companies face a risk when Natural disasters are the sudden events and the occurrence
of such events can be predicted to certain extent, based on
it comes to charging an optimum premium amount to their
customers in cyclone-prone areas. This is primarily due to the hazards that pose threat to the area. As the natural
disaster are the rare events, but the records of the past
the lack of a scientifically proven data source.
events can give valuable information.
Using GIS-based solutions, insurance agencies can identify
the probability and intensity of cyclones to determine Y Migration planning and measurements:
insurance coverage and charge asset owners the In case of the events of natural disaster the mitigation
appropriate premiums. These logical, data-driven premium planning plays an important role for the safety and security
values, in turn, encourage more asset owners to opt for risk of the lives of the people in the hazardous zone. The risk of
insurance for tropical cyclones. This is a win-win situation the hazardous zone is not same all over the areas, so in such
case the GIS can be used to demarcate the zones of the
for both the insurer and the insured.
high medium and low risk zones within the area based on
Y Use GIS data in real-time to track tropical which the mitigation measurements can be planned.
Depending upon the severity of the natural disaster of the
cyclones and their impact area can be determined using the GIS Tools.
GIS is not only useful pre-disaster but even after that.
Insurance companies can use GIS to trace a cyclone in real- Y Post disaster management
time to understand its path.
GIS can be used for planning and managing the post disaster
management such as utility management, finding the prone
areas, calculating the economic losses in terms of
infrastructure and in case of irrigation.

Y Fleet Management and planning rescue
operations
GIS can be used for planning the fleet in case of emergency,
in case of planning the shortest route, or rerouting the fleet
as per the cyclonic condition, planning the service area in
case of emergency. GIS can be widely used for rescue
operation in case of any critical damages.

20 The Insurance Times, August 2021