Digital twins can empower insurers to overcome the climate crisis

Digital twins are virtual risk models that can accurately reflect a physical object such as a property. (Photo: peshkov/Adobe Stock)

As natural disasters continue to sweep the globe, climate change brings increasingly unpredictable and damaging weather patterns that insurers must battle to ensure profitable yet competitive underwriting.

Throughout 2022 in the United States alone, there have been 15 weather-related climate disasters with losses exceeding $1 billion each. This is the eighth consecutive year in which the U.S. has endured ten or more billion-dollar disaster events, which have included drought, flooding, severe storms, tropical cyclone events, and wildfires. The National Oceanic and Atmospheric Administration estimates that damage costs from weather and climate disasters in 2022 could exceed $100 billion.