Climate change and extreme weather events create a wide range of business impacts -- from supply chain disruptions to rising insurance costs.
Over 1 in 4 organizations globally are already being impacted by climate change.* Our team of scientists and engineers work closely with customers to understand their needs and bring the most innovative climate risk modeling solutions to them. Our starting points are wildfire and extreme wind risk.
To learn how our product works, and how we can make it work for you, schedule a demo today.
Year-Ahead Wildfire Forecast for California
Extreme wildfire conditions have increased by 50% in recent decades due to climate change, causing $31B in property loss. As a result, insurance companies have refused to insure homes and businesses in California, drastically reducing their revenue. Terrafuse’s wildfire AI risk scores profile the actual likelihood of any property to burn one year ahead. Our wildfire risk product allows insurance companies to not only underwrite more businesses and reduce non-renewals to only properties with the highest burn probabilities, but also price business commensurate with actual risk.
Validated Terrafuse wildfire risk scores against $1B in historical losses for properties in California from recent wildfire catastrophes.
Identified $3B revenue opportunity of high but still insurable risks that other leading models misclassify as too risky.
Demonstrated our wildfire AI model would have prevented 71% of all losses (or ~$500M) for a specific portfolio had it been used instead of incumbent models.
Demonstrated lift of 56 for a top 10 primary insurance company.*
TERRAFUSE WILDFIRE AI MODEL
Risk Percentile: percent of total insured value
Loss Percentile: percent of total losses
Loss Ratio: loss divided by premiums
*Lift measures the ability of the wildfire risk score to segment the best from the worst risks. The higher the lift, the better the model differentiates the very high risk from the very low risk. Typical insurance models have lifts in the single digits.