Atmospheric and Environmental Research (AER) and The Atmospheric and Environmental Research (AER). (HSB) have formed an alliance to provide a product that assesses blackout risk in the United States.
The technology will be made available for use by insurers and reinsurers, commercial and industrial firms, and other businesses.
Electrical blackouts are on the rise across the U.S., costing businesses and consumers more than $100 billion annually and inconveniencing millions of people. So far, the market lacks a widely available and dependable tool to calculate the financial consequences of power outages, making it more challenging for utilities, businesses, and insurance companies to assess potential losses from multiple perils.
“Severe weather and other factors have increased the number and duration of blackouts, causing disruptions and economic losses to grow exponentially,” said Greg Barats, HSB president and chief executive officer.
He said HSB and AER are commercializing the blackout risk data and technologies that they built and applied within their own businesses over the past decade. It will make it possible for others to plan for widespread blackouts and to help clients minimize the impact.
HSB, part of Munich Re, is an engineering and technical risk insurer in North America and a large insurer of electrical equipment. AER, a unit of Verisk Analytics provides climate and environmental risk management services.