A collaboration between an insurance company and an Israeli tech startup will use artificial intelligence (AI) to analyze 3D images of millions of Japanese buildings to assess their insurance and real estate asset risks. Sompo, the second-largest insurer in Japan, and GeoX announced the joint venture earlier this month.
Founded in 2018, GeoX uses its patented tech to help customers make the underwriting process more efficient when looking at property damage caused by natural disasters. In the venture with Sompo, the companies will be looking specifically at Japanese buildings to determine damages from earthquakes.
GeoX’s tech is in high demand right now because of increased climate change-induced natural disasters, which have had a significant impact on commercial and residential properties. Total worldwide economic losses from severe weather like wildfires, hurricanes, and flooding were estimated at $343 billion in 2021, according to a report by Aon, a multinational insurance firm. That made last year the third-costliest year on record for severe weather damages. The report warned mounting costs from climate-fueled disasters are only in the early stages.
New tech from GeoX will prove valuable in a time when natural disasters are pounding the property sector. But ultimately, property owners will have tough decisions to make in the years ahead as climate disasters increase. Building more resilient structures and planning for emergencies helps. But as some experts have noted recently, factoring in climate change when deciding where properties are built in the first place may soon become more common.
