Atmospheric and Environmental Research (AER) and The Hartford Steam Boiler Inspection and Insurance Co. (HSB) have formed a strategic alliance that will provide a technology and services product to understand and assess blackout risk in the United States. The technology will be used by insurers and reinsurers, commercial and industrial firms, and other businesses.
Electrical blackouts are on the rise across the U.S., costing businesses and consumers more than $100 billion annually and inconveniencing millions of people. So far, the market lacks a widely available and dependable tool to calculate the financial consequences of power outages, making it more challenging for utilities, businesses, and insurance companies to assess potential losses from multiple perils.
“Severe weather and other factors have increased the number and duration of blackouts, causing disruptions and economic losses to grow exponentially,” said Greg Barats, HSB president and chief executive officer. “HSB and AER are commercializing the blackout risk data and technologies that our firms built, calibrated and applied within our businesses over the past decade. Our joint teams will now make it possible for stakeholders to plan for widespread blackouts caused by a broad range of perils to help clients minimize and manage the impact across all lines of business.”
HSB, part of Munich Re, is an engineering and technical risk insurer in North America and a large insurer of electrical equipment. AER, a unit of Verisk Analytics provides climate and environmental risk management solutions.
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