Remote sensing innovation

Remote sensing, which includes both space and earth observation (EO), is the science of collecting and interpreting visual intelligence about objects from afar using sensors mounted on satellites, aircraft and drones. Applications of such data have been expanding rapidly, as a result of advances in satellite design (ie miniaturisation) and the availability of cheaper commercial launching services. While governments and the military have so far been the main users of remote sensing, these supply-side developments are democratising usage of granular physical insights.

In a new Expertise Publication launched in 2021, Swiss Re Institute examined the implications of this for advancing sustainability and expanding the bounds of insurability. In an analysis of the 17 UN Sustainable Development Goals (SDGs) and their 231 associated indicators, it found that using high-resolution EO data can help track at least 17% of these indicators and optimise the allocation of resources. Many of them are also relevant for insurability and areas of risk modelling.

Recent innovations in remote sensing are also expanding the boundaries of insurability. They can help make existing insurance processes more efficient and have the potential to create new markets and risk pools. Examples of insurance processes that can already benefit from these developments are granular indices for parametric products, rapid claims assessments and early warning alerts for customers. These advances can benefit a number of SDGs, either directly or indirectly.

The publication concludes by looking ahead to the potential for enterprise-scale deployment of remote sensing EO data and some of the key challenges to be overcome. These include, for example, selecting the right use cases compatible with local requirements, meeting privacy and regulatory concerns, integrating data from diverse in-situ sources and appropriately curating them. Long-term partnerships with data vendors are considered essential to customise data as required and to create viable insurance products.