Weather forecasting product for insurance industry looks 10 days ahead rather than 5

Guy Carpenter has teamed up with WSI Corporation, a provider of weather-based business solutions, to launch a product providing accurate 10-day predictions of the path and intensity of upcoming hurricanes and tropical storms.

The WSI LiveCat Forecast service, developed in collaboration with Guy Carpenter, will enable insurance companies to better manage exposures and develop recovery plans with more precision. It uses the latest meteorological models to predict the direction, intensity and duration of a named tropical storm or hurricane, along with US landfall probability, five days beyond the standard five-day forecast period currently predicted by the National Hurricane Centre (NHC). This patent-pending technique allows insurers to establish advantageous market positions days ahead of those relying on NHC information alone.

“WSI and Guy Carpenter have developed a forecast that goes well beyond what is currently available for the insurance marketplace. By applying WSI’s deep understanding of weather prediction to advance hurricane forecasting to the next level, WSI LiveCat Forecast gives insurance companies an edge by predicting a storm’s path and intensity up to five days longer than the National Hurricane Centre,” said Ira Scharf, general manager of WSI’s Energy and Risk Services.

“The partnership between Guy Carpenter and WSI resulted in a more complete approach to risk management, by combining a robust meteorological tool with industry-specific knowledge,” said Michelle Harnick, managing director for Guy Carpenter. “As WSI LiveCat Forecast provides insurers with extra time to identify areas of greatest exposure and mitigate their risk, Guy Carpenter can help its clients create effective reinsurance solutions.”