HazardHub Provides Critical Hurricane Risk Data and Maps

Rhea-AI Summary

Guidewire (NYSE: GWRE) has released critical hurricane risk data and maps for the United States through its HazardHub service. The data covers national, state, and local levels, utilizing over 1,000 data points and risk scores for climate and extreme weather events. Key findings include:

1. Top 10 states for hurricane risk, with Florida, Louisiana, and South Carolina leading.
2. Percentage of housing units at risk of storm surge flooding in high-risk states.
3. Florida has nearly 1 in 3 homes (3 million) susceptible to storm surge flooding.
4. Louisiana has 52% of homes (910,000) at risk of hurricane storm surge flooding.

The HazardHub Hurricane Risk Scores and other data are available to insurers through Guidewire apps and the HazardHub API. Consumers can check their home's risks at freehomerisk.com.

Positive

• Release of comprehensive hurricane risk data and maps for the US market
• Integration of HazardHub data into Guidewire's insurance software products
• Potential for increased revenue through data services to insurers and property owners

Negative

• None.

Insights

Market Research Analyst

The release of HazardHub's hurricane risk data and maps by Guidewire is a significant development for the insurance industry. This comprehensive dataset, covering over 1,000 data points and risk scores, will likely enhance underwriting accuracy and risk assessment for insurers operating in hurricane-prone regions.

The data reveals that 34% of homes in Florida and 52% in Louisiana are at high risk of storm surge flooding. This information could lead to adjustments in insurance premiums and coverage offerings in these high-risk areas. For investors, this might translate to increased revenue potential for Guidewire through wider adoption of their HazardHub technology by insurance companies seeking to refine their risk models.

However, the impact on Guidewire's stock may be in the short term, as the market often takes time to fully appreciate the value of such data services. Long-term, this could strengthen Guidewire's position as a leading provider of insurance technology solutions, potentially driving growth and market share.

Insurance Industry Expert

Guidewire's release of HazardHub's hurricane risk data is a game-changer for the insurance sector. This granular, address-level risk assessment tool will likely revolutionize underwriting processes for property insurers in coastal regions. The ability to accurately gauge hurricane and storm surge risks could lead to more precise pricing of policies and potentially reduce losses from catastrophic events.

Insurers utilizing this technology may gain a competitive edge in high-risk markets like Florida and Louisiana. However, it could also lead to increased premiums or reduced coverage availability in the most vulnerable areas, potentially creating challenges for property owners and local economies. The integration of this data into Guidewire's PolicyCenter and InsuranceNow platforms suggests a strategic move to enhance their core product offerings, which could drive increased adoption and customer retention.

Climate Risk Specialist

The HazardHub data underscores the escalating climate risks facing coastal communities. With 21% of South Carolina and 20% of Delaware housing units at high risk of storm surge flooding, we're seeing a clear pattern of increased vulnerability along the Eastern Seaboard. This data could catalyze more robust climate adaptation strategies at state and local levels.

For investors, this highlights potential long-term risks to real estate and infrastructure in these regions. It may also signal growing market opportunities in climate resilience technologies and services. The availability of this data to consumers through freehomerisk.com could drive increased demand for property-level climate risk assessments, potentially creating new revenue streams for companies in this space. However, it may also lead to shifts in property values and insurance markets in high-risk areas, which investors should monitor closely.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Guidewire (NYSE: GWRE) announced the availability of critical data and maps detailing hurricane risk at the national, state, and local levels in the United States. This service leverages HazardHub’s more than 1,000 data points and risk scores for climate risks and extreme weather events.

Top States for Hurricane Risk

The top ten states for hurricane risk, based on the percentage of properties rated as “D” (high) or “F” (very high) risk for hurricane damage in the Guidewire HazardHub Hurricane Risk Model, are:

1. Florida
2. Louisiana
3. South Carolina
4. Texas
5. Mississippi
6. North Carolina
7. Delaware
8. Georgia
9. Alabama
10. Virginia

These states face the highest hurricane risk, factoring in the likelihood of Category 1 or greater hurricanes, proximity to the coast, and the frequency of tropical and subtropical events, among other factors.

States at Risk of Storm Surge

The percentage of housing units at risk of storm surge flooding in high-risk states for hurricanes, as indicated by an "F" rating in the HazardHub SurgeMax Storm Surge Flooding Model, are:

• Louisiana - 52%
• Florida - 34%
• South Carolina - 21%
• Delaware - 20%
• Virginia - 13%
• Mississippi - 9%
• North Carolina - 7%
• Texas - 5%
• Georgia - 4%
• Alabama - 3%

The HazardHub SurgeMax Score is a metric developed by HazardHub to measure the risk of storm surge flooding for any given location. The score is designed to help insurers, underwriters, and others assess and manage the risk associated with storm surge events, which can be a significant threat in coastal areas, particularly during severe hurricanes. The SurgeMax Score takes into account various factors, including historical NOAA storm surge data, topography, distance from the coast, and other relevant geographical and environmental data to estimate the potential severity of storm surge impacts.

In Florida, the state at most significant risk for hurricane events, nearly 1 out of 3 homes, or 3 million homes, are susceptible to storm surge flooding from hurricanes, making it one of the most vulnerable states to flooding from hurricanes. In Louisiana, the state with the second greatest hurricane risk, approximately 52% of homes, or 910,000 homes, are susceptible to hurricane storm surge flooding.

Louisiana is highly prone to hurricanes and storm surge flooding due to its location along the warm waters of the Gulf of Mexico, its low elevation and flat terrain, and the ongoing loss of protective wetlands and barrier islands. The Mississippi River Delta's subsidence further exacerbates the state's vulnerability, making it one of the most at-risk areas for flooding during hurricanes.

"Understanding hurricane risk is vital for insurers and property owners alike, as it informs their coverage options, emergency plans, and mitigation strategies,” said Christina Hupy, Vice President, HazardHub at Guidewire. "HazardHub helps insurers better understand a property’s climate and hurricane risks at the individual address level, enabling more accurate underwriting of that risk. With this technology, property owners, meanwhile, are also better informed to be able to mitigate their risks and prepare for these events.”

The HazardHub Hurricane Risk Scores and other detailed data and risk scores are accessible to insurers through Guidewire apps, including PolicyCenter and InsuranceNow, and via the HazardHub API. Consumers interested in learning about their home’s risks can visit freehomerisk.com.

About Guidewire

Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. More than 570 insurers in 42 countries, from new ventures to the largest and most complex in the world, rely on Guidewire products. With core systems leveraging data and analytics, digital, and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers.

We are proud of our unparalleled implementation record, with 1,700+ successful projects supported by the industry’s largest R&D team and SI partner ecosystem. Our marketplace represents the largest solution partner community in P&C, where customers can access hundreds of applications to accelerate integration, localization, and innovation.

For more information, please visit www.guidewire.com and follow us on X (formerly known as Twitter) and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240913008591/en/

For more information and customized maps, please contact:



Melissa Cobb, Senior Public Relations Manager

Guidewire Software

+1 650-464-1177

mcobb@guidewire.com

Source: Guidewire

FAQ

What are the top 3 states for hurricane risk according to Guidewire's HazardHub data?

According to Guidewire's HazardHub data, the top 3 states for hurricane risk are Florida, Louisiana, and South Carolina.

How many homes in Florida are susceptible to storm surge flooding from hurricanes?

Nearly 1 out of 3 homes in Florida, or approximately 3 million homes, are susceptible to storm surge flooding from hurricanes.

What percentage of homes in Louisiana are at risk of hurricane storm surge flooding?

Approximately 52% of homes in Louisiana, or 910,000 homes, are susceptible to hurricane storm surge flooding.

How can insurers access Guidewire's (GWRE) HazardHub Hurricane Risk Scores?

Insurers can access Guidewire's (GWRE) HazardHub Hurricane Risk Scores through Guidewire apps, including PolicyCenter and InsuranceNow, and via the HazardHub API.