The GC Urban Conflagration Index, available in the western United States and Florida, identifies areas where the phenomenon of urban conflagration is more likely. Urban conflagration – wildfire entering a developed area and spreading from structure to structure, is of particular concern to carriers due to the highly correlated and often total resulting losses. The GC Urban Conflagration Index is also available at 30-meter resolution, which assists in identifying communities with elevated urban conflagration risk, according to Alexander Van Dijk, President, U.S. Branches, and Kimberly Roberts, North America Peril Advisory, Guy Carpenter.
GC Urban Conflagration Index. In this example, risks located in the green areas have less urban conflagration risk than those located in orange and red areas. The GC Wildfire Risk Score and Urban Conflagration Index form the backbone of a series of products and analyses that operate from the policy level to the portfolio and enterprise level. The backbone of Guy Carpenter’s offerings is the ability to improve underwriting decisions through effective and validated scoring mechanisms. At the portfolio level, the GC Wildfire Diagnostic quantifies loss potential and aides in the management of wildfire aggregate exposures. Additional wildfire services include portfolio optimization, custom growth strategies in wildfire vulnerable areas, and dedicated expertise when a live event is occurring.
Moving Forward
As recent history and ongoing weather patterns have shown, wildfire is a peril that demands improved modeling efforts to quantify and manage risk. The GC Wildfire Diagnostic leverages the latest in wildfire science, allowing insurers to effectively quantify and manage their exposure to wildfire risk, which is of growing concern to all property insurers in California and beyond. It allows insurers to accelerate responsible growth without fear of unintended impacts to profitability. The GC Wildfire Diagnostic supports better risk management decisions, enhanced profitability and opportunities for an improved competitive position in a landscape of increasing wildfire risk.