In a world increasingly shaped by rapid technological advancements, the convergence of the space economy and the insurance sector is creating unparalleled opportunities and challenges. This exciting integration was the focal point of the event organized by ANIA (National Association of Insurance Companies) and AIPAS (Italian Association for Space Activities) in Rome on June 4, 2024.

The event gathered industry leaders, experts, and innovators to explore into how space technologies can revolutionize our approach to risk management. The discussions highlighted how combining space and digital technologies could forge new value chains across various domains, such as precision agriculture, disaster risk management, urban planning, and environmental protection.

With the space economy valued at around $470 billion and expected to grow further, managing its risks becomes crucial. Maria Bianca Farina, President of ANIA, emphasized the importance of addressing the complexities of insuring space-related risks. She noted the Italian government’s efforts to develop the first national space law, which aims to regulate critical aspects like liability for orbital incidents and technical requirements for private operators. This legislation is designed to foster sustainable growth in the space sector while ensuring consumer protection and effective risk management.

The insurance sector faces increasingly complex challenges. Traditional risk management strategies are often inadequate in the face of dynamic and unpredictable risks such as natural disasters, climate change, and rapid urbanization. Insurers need to navigate a landscape where the frequency and severity of events like floods, wildfires are on the rise, and where new threats, such as  the impacts of climate change, are continually emerging.

During a session on natural disasters, Gaetano Volpe, CEO of Latitudo 40, showcased how our company is driving transformation within the space economy. As the demand for predictive tools in the insurance sector grows, particularly with the impending requirement for mandatory natural disaster insurance for businesses, Latitudo 40 is leading the way in developing advanced geospatial solutions.

How geospatial data can help insurance companies? They can:

  • Identify hazard-prone areas: By analyzing historical and real-time data on natural disasters like floods and wildfires, insurers can pinpoint areas with higher risks and adjust premiums accordingly.
  • Evaluate environmental risks: Information about proximity to forests, water bodies, or industrial areas helps in understanding potential environmental risks, such as treefalls or landslides.
  • Assess Property and infrastructure conditions: Satellite images and remote sensing technologies can offer detailed views of property conditions and state of building, helping underwriters to make more informed decisions without the need for physical inspections.

Why Should the Insurance Sector Embrace Latitudo 40’s environmental insights?

At Latitudo 40, we specialize in transforming complex geospatial data into actionable insights that are critical for the insurance industry. Satellite data provides a powerful solution to these challenges, offering insurers unparalleled insights into the physical and environmental factors affecting their risk portfolios.

For example:

  • Urban Heat Islands: Our data can pinpoint urban heat islands, areas where the temperature is significantly higher than surrounding regions due to human activities. This information is vital for insurers to understand the impact of heatwaves on urban areas, potentially affecting health insurance claims and property damage.
  • Coastal Erosion Monitoring: Satellite data allows us to track coastal erosion and the impact of sea-level rise. Insurers can use this information to assess the risk to coastal properties and infrastructure, aiding in the development of more accurate risk models.
  • Agricultural prediction: In the agricultural sector, satellite imagery can be used to monitor crop health and predict yields. This data helps insurers offer tailored policies to farmers, covering potential losses due to adverse environmental conditions.

Our collaboration with Vodafone on the LAURA project exemplifies another of our innovations. The LAURA project analyses agricultural fields using a 5G-connected rover equipped with LIDAR cameras. This autonomous vehicle collects data from crops, which is combined with satellite data to produce high-quality analyses of crop conditions. This integration allows for precise monitoring and management of agricultural practices, enhancing efficiency and sustainability. Learn more about the LAURA Project.

Clients can access our data at Latitudo 40 through our innovative and user-friendly platform, EarthDataPlace. EarthDataPlace is Italy’s first marketplace to integrate artificial intelligence and machine learning for analysing vast satellite data. This innovative tool provides essential, timely insights for various applications, including environmental monitoring, risk assessment, and urban infrastructure management.

Explore our advanced geospatial solutions on EarthDataPlace. Discover how our innovations can help your city or business tackle environmental and urban challenges effectively.