UK Space Agency’s METEOR project: Making the case for Earth Observation (EO) data for insurance in developing countries

Abstract:

Natural disasters create significant fiscal losses and in recent years developing countries have been experiencing the greatest impacts due to large exposed population and assets. In developing countries, there is a pressing need to characterize hazard, exposure, and vulnerability to allow for comprehensive Disaster Risk Management (DRM) and Disaster Risk Reduction (DRR) plans. METEOR (the Modelling Exposure Through Earth Observation Routines project) is making a step-change in the application of Earth Observation (EO) exposure data by delivering rigorous and open protocols and standards to allow for quantitative assessment of exposure, vulnerability, and hazard. The building exposure datasets were created for 47 “Least Developed Countries” (LDCs), including 33 in Africa. The models combined multiple EO datasets, including data from the NASA/NOAA Visible Infrared Imaging Radiometer Suite (VIIRS), Landscan (ORNL), and Global Human Settlement layers (EC-JRC). Additional datasets include Global Impervious Surface Area (IMPSA), Global Rural-Urban Mapping Project (GRUMP), High Resolution Settlement Layer (HRSL), Global Human Settlement Layer (Landsat-8 and Sentinel-1 based), European Commission Joint Research Centre (EC-JRC) Global Sentinel-1 SAR RGB-based mosaic, and Global Urban Footprint (GUF). METEOR is co-funded through the second iteration of the UK Space Agency’s International Partnership Programme (IPP), funded through the Global Challenges Research Fund (GCRF), which uses space expertise to deliver innovative solutions to real-world problems across the globe. This paper addresses the use case for METEOR exposure data to deliver benefits to developing countries, particularly in support of market development for insurance. The insurance industry has always been at the forefront of providing financial protection strategies and technical expertise to various stakeholders including country governments. This paper provides examples of how EO-derived METEOR data can support the insurance industry to develop programs and markets for parametric insurance, catastrophe bonds, and sovereign risk financing and insurance for the developing countries.