Using AI technologies for climate risk relief

We explore how climate risk is defined by the Task Force on Climate-Risk related disclosures (TFCD) and how climate-related weather events have impacted South Africa. We then further visit some responses to climate-related weather events by stakeholders such as municipalities, weather agencies, the private sector and general insurance companies. We also highlight some of the key changes insurance companies have implemented to manage their risk exposure to climate-related risks through pricing and insurance coverage, product innovation and claims management enhancements. Furthermore, we provide some examples of how insurers have leveraged off artificial intelligence (AI) and technology-enabled methods to improve their resilience to climate-related weather events such as the implementation of machine learning techniques to automate underwriting and pricing procedures which adjust themselves as new data regarding the insured perils becomes available, i.e., generative AI.