Challenge

Zurich Santander (ZS)¹, a joint venture between Zurich Insurance Group and Santander, constantly looks for innovative ways to future-proof insurance. Through its yearly global startup program, the Zurich Innovation Championship, Zurich Santander sought to proactively inform policyholders of weather-related risks with tips about preventive measures and available assistance services to promote the well-being of their customers and enhance climate resilience.  

Solution

Salient Predictions' risk alerts are integrated into ZS's communication systems to provide early safety notifications to ZS customers about flood, wind, extreme temperature, and storm risks. A notable success was predicting heavy rainfall in Sao Paulo, Brazil, with three weeks advance notice (Figure 1).

Key features of Salient's solution includes customizable hazards, allowing analysis of precipitation, wind, heat, and cold hazards based on tailored intensity thresholds; risk levels defined relative to climatological norms or absolute risk probabilities; and customizable areas to tailor thresholds for specific global regions, acknowledging that the definition of "extreme" varies based on infrastructure and preparedness.

‍Impact

Zurich Santander's value proposition in partnering with Salient was to lead a positive impact through earlier notifications and pre-staging resources to prevent and mitigate losses. The advance warning allowed ZS to notify over 7,000 residential and business (SME) customers in the impacted areas via SMS, enabling more customers to reach out for assistance at a number provided in the SMS communications.

In preparation, ZS mobilized teams and claims regulators at the branches in Sao Sebastiao to offer immediate emergency assistance to impacted customers. Teams across various departments, including claims, customer service, and operations, coordinated effectively, resulting in higher customer satisfaction and retention.

Stakeholder Perspective

"This is a great example of where co-creation between an insurer and a startup can result in something new, different, and meaningful – and it is exactly what we have been looking for through our global startup program, the Zurich Innovation Championship. By combining Salient's data-driven approach to weather and Zurich Insurance's risk expertise, we have been able to alert, help, and support our customers," said Antony Elliott, Group Head of Digital R&D at Zurich Insurance.

According to the leader of this initiative in ZS, Isabella Ramos, "Salient's solution provides reliable predictions of heavy rain, wind storms, and temperature extremes. Early alerts allow our clients to protect their homes and families and reduce damage while our teams anticipate claims, enhancing overall customer satisfaction."

Conclusion

Climate volatility puts businesses and society at increasing risk. Traditional forecasts lose predictability beyond a 10-day window. Salient's platform changes this, offering reliable, longer-term weather predictions. This capability is crucial for businesses like Zurich Santander, allowing them to make impactful decisions in time to protect their clients and mitigate losses due to climate volatility.

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¹ Zurich Santander is a joint venture between Zurich Insurance Group and Banco Santander.