Satellite solutions: ICEYE’s impact on European flood insurance

The increased surge in significant flood events has been putting increased pressure on insurers and reinsurers to manage the fallout effectively. 

Companies such as ICEYE, which specialises in satellite data, are playing a crucial role in helping insurers better understand and respond to these extreme weather events. 

With a 38-strong satellite constellation already orbiting the Earth and plans to launch many more, ICEYE is providing real-time flood data that allows insurers to respond quickly and efficiently, coordinating resources and assisting clients before their competitors do.

Anke Sielker, head of reinsurance practice and head of insurance, Europe & Middle East, shared how the company handles data.

“For Storm Boris, we started forecasting the event 96 hours ahead. As the event started, we provided flood extent maps to our clients every eight hours during the flooding. Within 24 hours of the first peak of flooding, we provided flood depth data, which we continued to do for eight days.”

Rupert Bidwell, vice-president of insurance solutions at ICEYE, explained how insurers used this data to manage their response. “Our insurance clients started to use our data to understand the size and impact of the overall event. 

“They then coordinated their ‘on the ground’ event response, ensuring they had enough resources, such as loss adjusters, drying companies, repairers, and temporary accommodation. This is before their competitors secure these resources.” 

He added that insurers proactively reached out to customers, providing advice, guidance, and reassurance during the crisis.

“We have seen a wide array of reasons for flooding.”

Flood dynamics in Europe have been evolving, with a variety of factors contributing to more frequent and severe events. 

Sielker noted: “We have seen a wide array of reasons for flooding. The winter was affected by large-scale flooding, with moist soil incapable of absorbing more water, spreading across northern France, Belgium, and Germany. 

“Storm surges hit northern Germany, and the summer was the fifth warmest since 1901. High temperatures combined with moisture-rich air fuelled storms, creating intense rainfall.” 

Sielker highlighted the scale of these events, such as storms Orinoco and Boris, while mapping localised flash floods across Southern Europe. “Flooding happens across most territories, and the intensities seem to spike,” she added.

Given that multiple events can impact the same areas in quick succession, insurers need to differentiate between events. 

Sielker emphasised the value of satellite data in this context: “Because we are observing the event in real time, we know precisely when the water was impacting a given location. 

“This is possible because our satellites use Synthetic Aperture Radar sensors that see the water regardless of clouds or darkness.”

As the climate evolves and flood events become more frequent, satellite data is likely to play an even larger role in insurers’ response strategies. 

Bidwell pointed out that while some insurers had attempted to use government-supplied data, such as Copernicus, this data was not designed specifically for insurers and was difficult to integrate into their response strategies. 

“Insurers are able to more accurately calculate the impact of the loss straight away.”

“With the advent of private providers, insurers now have access to data specifically designed for incorporation in their event response,” he said.

Better for everyone

Looking at the broader implications for the reinsurance market, Sielker described how satellite data could improve interactions between insurers and reinsurers: “Insurers are able to more accurately calculate the impact of the loss straight away. 

“Reinsurers will ultimately benefit from the lower claim handling and indemnity costs in any reinsurance recovery, and in the longer term, all parties will benefit from our data being used to extend and refine models for better pricing and underwriting risk selection.”

ICEYE is working on expanding its capabilities to cover a wider range of natural disasters. 

Bidwell shared details of its current projects, saying: “We delivered for hurricanes Helene and Milton within 48 hours of landfall. 

“We have two clients in live pilots for earthquake data and are also working on wildfire solutions in the US and Australia. 

“By the end of next year, all things being equal, we will be offering a complete nat cat multi-peril data solution to insurers and reinsurers—except for hail.”

In a world where climate change is making extreme weather events more common, ICEYE’s satellite data is proving invaluable in helping insurers and reinsurers manage their risks and respond more effectively to disasters. 

With the continued development of their technology, the future looks promising for improved flood management and disaster response across Europe and beyond.

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