Insuring and Ensuring the Future: Leveraging Satellite Imagery for Insurance Solutions

Satellite remote sensing data has a plethora of applications in many industries by now, and urban, forestry or crop insurance is no exception. With nearly 1,000 of active earth observation satellites, ten thousands more are planned to be launched to orbit.

Yet, a satellite image is not just a farm picture from space. Satellite analytics providers run multiple algorithms of artificial intelligence and machine learning to extract actionable insights from the retrieved imagery for every location. Day by day, satellite analytics becomes smarter, offering valuable data on various field parameters that agricultural insurance companies can integrate into their processes.

Application of Space Technology in Insurance Industry

Let’s consider how the insurance industry can benefit from satellite remote sensing. First and foremost, satellite images can be used with a dual purpose: for risk assessment, as well as prognosis and modeling.

Satellite imagery provides weather data including advanced soil moisture analytics to help assess weather-related risks, allowing for better and more accurate insurance pricing policy and underwriting. In particular, agricultural insurance companies can use satellite data to analyze plant health, possible disease threats, upcoming weather extremities, and other risk-involving events. Moreover, historical soil moisture maps can aid insurance companies in carrying out a more comprehensive assessment of drought and waterlogging risks on a regional scale, thus making better-informed insurance pay-out decisions.

Then, having current and historical data at hand, insurers can figure out the most typical patterns and trends to predict the likely outcomes, which enables prognosis and modeling for every particular situation to anticipate potential claims. The good thing is that satellite sensors can do a great deal of the job remotely, which is invaluable for distant, scattered, or hard-to-reach places.

Remote sensing has a very vast territory coverage, providing data both on global and regional scale. Frequent satellite revisits allow for regular near-real-time AOI monitoring, and therefore minimization of possible losses by noticing early signs of potential risks.

What The Market Has To Offer For The Insurance Industry

Establishing an insurance policy is a complex process that involves numerous factors, and satellite imagery is one of the most reliable and significant sources of data among many. Satellite data-driven solutions offer a range of customizable options that are advantageous for both insurance providers and policyholders.

For instance, online platforms for farm management utilize satellite imagery to provide comprehensive information about crop conditions through various vegetation indices, as well as current weather data. Such platforms often include a feature that allows for recording agricultural activities performed or planned for a field, aiding in the verification of claims by demonstrating whether crops were managed appropriately.

The access to information on vegetation indices and weather data, including temperature, wind speed, rainfall, and soil moisture, can improve the precision of index-based insurance models, increase business transparency, and thereby foster customer trust. Analyzing historical weather data and field productivity can enable predictions about crop yields and help verify the occurrence and severity of insurance events.

These platforms can also serve as efficient tools for field inspections, reducing the area that needs to be checked and consequently lowering inspection costs. With features for targeted scouting, users can obtain detailed inspection reports, complete with photographs, directly through mobile applications.

Furthermore, the convergence of machine learning algorithms with satellite data can refine risk models, leading to more dynamic and responsive insurance products. This fusion of technology not only enhances the accuracy of risk assessments but also enables the development of proactive risk management strategies, ultimately benefiting both insurers and the insured.

Additionally, satellite and weather data providers can offer tailored solutions to meet specific needs of insurance companies. The latter might find it beneficial to include such technological solutions in their offerings as an additional feature.

Support and training from dedicated customer service teams ensure that users maximize the benefits of these technologies, enhancing their experience and satisfaction with the services provided.

Future of Satellite Imagery in Insurance Sector

Setting off a satellite into space is a less cost-consuming venture than it was decades ago, and many operators switch to smaller units on the low earth orbit (LEO). Smaller satellites are more cost-effective to launch, and the LEO orbit grants the shortest interval of signal transmission. For instance, students at Brown University designed and built a low-cost satellite, SBUDNIC, which includes a 3D-printed drag sail to decrease its orbital lifespan and mitigate space debris. The total cost of this cube satellite was around $10,000, demonstrating a significant reduction in expenses compared to traditional satellites. This project highlights the potential for more accessible space exploration and the importance of addressing space debris​.

As the spacecraft building industry becomes cheaper, satellite technologies get more affordable. Besides, ever-going progress of technology and emerging novelties introduce insurance and reinsurance companies to more accurate and flexible solutions.

Satellite sensors become more and more sensitive, keeping a keen eye on the Earth and capturing it sharply that ever. Optical satellites retrieve more and more granular images, and high resolution greatly improves data precision. Harnessing advanced SAR technologies enables quality radar image acquisition regardless of cloud cover and atmospheric aerosols.

The development of remote sensing technologies is likely to encourage constant dynamics in insurance models, with a better situation understanding and thus more flexibility and accuracy of crop insurance plans. Such an approach will attract more customers and ensure their success.

Embracing the newest satellite technologies alongside AI innovations will greatly improve every single niche in the insurance sector. With the incorporation of satellite technologies, agricultural insurance companies will be able to face such challenges as climate change, flooding, wildfires, and other once uninsurable risks. Moreover, the integration of real-time data analysis and predictive modeling will enhance risk assessment, making policies more tailored and responsive to individual needs.

Technology adoption rates often depend on their affordability, and many satellite analytics platforms provide accurate data for a good price. Taking all the advantages into consideration, we can draw a conclusion that the future of data-driven insurance is rather promising. Wisely investing in business development and equipped with edgy technology innovations, insurance sector stakeholders will always be able to grasp the situation, increase their ROI, and keep ahead of the game.