Initiatives through Industry-academia Cooperation
Development of Flood Risk Assessment Methods for Japan and Asian Countries
To deal with flood risk, which can be affected by medium- and long-term climate change, Sompo Risk Management is engaged in research and development into flood risk assessment methods for Japan and Asian countries to offer new insurance services and risk consulting services that support adaptation to climate change.
In Japan, Sompo Risk Management is utilizing a flood risk assessment system*1, developed jointly with Kyoto University and Kobe University, for insurance risk management and natural disaster risk consulting.
For Thailand, they are using a flood risk assessment system developed jointly with the Foundation of River & Basin Integrated Communications to manage insurance risk and develop insurance products. They have also developed new flood scenario risk assessment methods*2 for major urban areas in China, Vietnam, Indonesia, the Philippines, Malaysia, Singapore, and Brazil aiming at enforce risk management system.
They steadily have expanded the area to which they can apply these flood risk assessment systems and methods. In 2017, they added Myanmmar to the area aiming to develop services for Japanese companies which launch businesses in Myanmmar.
- A system to assess the probability of future flood damage, based on various possible rainfall scenarios.
- A method to assess flood damage under certain rainfall scenarios, including heavy rainfall observed in the past and probable heavy rainfall (e.g. rainfall of a certain intensity with the likelihood of once in 100 years).
First Private-sector Company in MEXT’s SI-CAT Program
Sompo Risk Management has become the first private-sector company to take part in the Social Implementation Program on Climate Change Adaptation Technology (SI-CAT)*1 run by the Japanese Ministry of Education, Culture, Sports, Science and Technology (MEXT).
By collaborating and exchanging ideas with research institutes and utilizing SI-CAT’s research results, Sompo Risk Management aims to quantify the risk of climate change using the typhoon/flood risk assessment models they have developed, research and analyze the changes in opportunities associated with social systems or changes in supply and demand, aiming to improve analysis techniques and build up expertise about climate change risk.
Our aim is to contribute to a sustainable society by developing and providing new solutions to help companies and local governments adapt to climate change, using the technologies and knowledge gained through this initiative.
- A program launched by MEXT in December 2015 to support the development and implementation of technologies to support areas requiring measures against the impact of climate change. The program Ends in March 2020.
Development of climate change impact quantification technology
Sompo Risk Management developed a technology for quantifying the effects of climate change on natural disasters, collaborating with the National Research Institute for Earth Science and Disaster Resilience (NIED) and the University of Tsukuba.
NIED and the University of Tsukuba provides climate forecasting expertise and data analysis methods, allowing Sompo Risk Management to perform large-scale analysis of typhoons and heavy rainfall using weather and climate big data. This analysis identifies trends in the average frequency and intensity of natural disasters as global warming advances, and quantifies the occurrence of extreme disasters such as major typhoons and large-scale heavy rainfall. These analysis results are then incorporated into the typhoon/flood risk assessment models we have developed for Japan, to quantitatively assess the impact of climate change on insurance underwriting.
By working with NIED, Sompo Japan and Sompo Risk Management aim to enhance the insurance underwriting risk management as well as develop and provide new insurance products and services to help companies and local governments adapt to climate change.
Participation in Global Industry-academia Cooperation Program on Natural Disasters
Sompo Digital Lab, our Group’s digital strategy subsidiary based in Silicon Valley, became the first Affiliate Member of the Stanford Urban Resilience Initiative (SURI), Stanford University’s industry-academia research program on natural disasters, in January 2019.
SURI was established in 2015 with the purpose of researching and developing the latest technologies and tools to build resilient cities and communities prepared for natural disasters such as earthquakes and floods. The university’s prospective PhD students and researchers collaborate on research and development with government agencies, companies and civil societies who share the program’s aims.
Through involvement in this collaborative research program, Sompo Digital Lab aims to fully harness our Group’s data platforms including huge amounts of big data on natural disasters and economic losses, as well as our expertise of disaster risk estimation, together with SURI’s advanced technology and human resources, to develop new services contributing to safety and security on the global theme of natural disaster risk.