The potential and uptake of remote sensing in insurance: A review

Global insurance markets are vast and diverse, and may offer many opportunities for remote sensing. To date, however, few operational applications of remote sensing for insurance exist. Papers claiming potential application of remote sensing typically stress the technical possibilities, without cons...

Full description

Bibliographic Details
Main Authors: Leeuw, Jan de, Vrieling, A., Shee, Apurba, Atzberger, Clement, Hadgu, K.M., Biradar, Chandrashekhar M., Keah, H., Turvey, C.G.
Format: Journal Article
Language:Inglés
Published: MDPI 2014
Subjects:
Online Access:https://hdl.handle.net/10568/51623
_version_ 1855517016299929600
author Leeuw, Jan de
Vrieling, A.
Shee, Apurba
Atzberger, Clement
Hadgu, K.M.
Biradar, Chandrashekhar M.
Keah, H.
Turvey, C.G.
author_browse Atzberger, Clement
Biradar, Chandrashekhar M.
Hadgu, K.M.
Keah, H.
Leeuw, Jan de
Shee, Apurba
Turvey, C.G.
Vrieling, A.
author_facet Leeuw, Jan de
Vrieling, A.
Shee, Apurba
Atzberger, Clement
Hadgu, K.M.
Biradar, Chandrashekhar M.
Keah, H.
Turvey, C.G.
author_sort Leeuw, Jan de
collection Repository of Agricultural Research Outputs (CGSpace)
description Global insurance markets are vast and diverse, and may offer many opportunities for remote sensing. To date, however, few operational applications of remote sensing for insurance exist. Papers claiming potential application of remote sensing typically stress the technical possibilities, without considering its contribution to customer value for the insured or to the profitability of the insurance industry. Based on a systematic search of available literature, this review investigates the potential and actual support of remote sensing to the insurance industry. The review reveals that research on remote sensing in classical claim-based insurance described in the literature revolve around crop damage and flood and fire risk assessment. Surprisingly, the use of remote sensing in claim-based insurance appears to be instigated by government rather than the insurance industry. In contrast, insurance companies are offering various index insurance products that are based on remote sensing. For example, remotely sensed index insurance for rangelands and livestock are operational, while various applications in crop index insurance are being considered or under development. The paper discusses these differences and concludes that there is particular scope for application of remote sensing by the insurance industry in index insurance because (1) indices can be constructed that correlate well with what is insured; (2) these indices can be delivered at low cost; and (3) it opens up new markets that are not served by claim-based insurance. The paper finally suggests that limited adoption of remote sensing in insurance results from a lack of mutual understanding and calls for greater cooperation between the insurance industry and the remote sensing community.
format Journal Article
id CGSpace51623
institution CGIAR Consortium
language Inglés
publishDate 2014
publishDateRange 2014
publishDateSort 2014
publisher MDPI
publisherStr MDPI
record_format dspace
spelling CGSpace516232024-01-09T09:53:49Z The potential and uptake of remote sensing in insurance: A review Leeuw, Jan de Vrieling, A. Shee, Apurba Atzberger, Clement Hadgu, K.M. Biradar, Chandrashekhar M. Keah, H. Turvey, C.G. agriculture Global insurance markets are vast and diverse, and may offer many opportunities for remote sensing. To date, however, few operational applications of remote sensing for insurance exist. Papers claiming potential application of remote sensing typically stress the technical possibilities, without considering its contribution to customer value for the insured or to the profitability of the insurance industry. Based on a systematic search of available literature, this review investigates the potential and actual support of remote sensing to the insurance industry. The review reveals that research on remote sensing in classical claim-based insurance described in the literature revolve around crop damage and flood and fire risk assessment. Surprisingly, the use of remote sensing in claim-based insurance appears to be instigated by government rather than the insurance industry. In contrast, insurance companies are offering various index insurance products that are based on remote sensing. For example, remotely sensed index insurance for rangelands and livestock are operational, while various applications in crop index insurance are being considered or under development. The paper discusses these differences and concludes that there is particular scope for application of remote sensing by the insurance industry in index insurance because (1) indices can be constructed that correlate well with what is insured; (2) these indices can be delivered at low cost; and (3) it opens up new markets that are not served by claim-based insurance. The paper finally suggests that limited adoption of remote sensing in insurance results from a lack of mutual understanding and calls for greater cooperation between the insurance industry and the remote sensing community. 2014-11-15 2014-11-24T08:26:37Z 2014-11-24T08:26:37Z Journal Article https://hdl.handle.net/10568/51623 en Open Access MDPI Leeuw, J. de, Vrieling, A., Shee, A., Atzberger, C., Hadgu, K.M., Biradar, C.M., Keah, H. and Turvey, C. 2014. The potential and uptake of remote sensing in insurance: A review. Remote Sensing 6(11):10888-10912.
spellingShingle agriculture
Leeuw, Jan de
Vrieling, A.
Shee, Apurba
Atzberger, Clement
Hadgu, K.M.
Biradar, Chandrashekhar M.
Keah, H.
Turvey, C.G.
The potential and uptake of remote sensing in insurance: A review
title The potential and uptake of remote sensing in insurance: A review
title_full The potential and uptake of remote sensing in insurance: A review
title_fullStr The potential and uptake of remote sensing in insurance: A review
title_full_unstemmed The potential and uptake of remote sensing in insurance: A review
title_short The potential and uptake of remote sensing in insurance: A review
title_sort potential and uptake of remote sensing in insurance a review
topic agriculture
url https://hdl.handle.net/10568/51623
work_keys_str_mv AT leeuwjande thepotentialanduptakeofremotesensingininsuranceareview
AT vrielinga thepotentialanduptakeofremotesensingininsuranceareview
AT sheeapurba thepotentialanduptakeofremotesensingininsuranceareview
AT atzbergerclement thepotentialanduptakeofremotesensingininsuranceareview
AT hadgukm thepotentialanduptakeofremotesensingininsuranceareview
AT biradarchandrashekharm thepotentialanduptakeofremotesensingininsuranceareview
AT keahh thepotentialanduptakeofremotesensingininsuranceareview
AT turveycg thepotentialanduptakeofremotesensingininsuranceareview
AT leeuwjande potentialanduptakeofremotesensingininsuranceareview
AT vrielinga potentialanduptakeofremotesensingininsuranceareview
AT sheeapurba potentialanduptakeofremotesensingininsuranceareview
AT atzbergerclement potentialanduptakeofremotesensingininsuranceareview
AT hadgukm potentialanduptakeofremotesensingininsuranceareview
AT biradarchandrashekharm potentialanduptakeofremotesensingininsuranceareview
AT keahh potentialanduptakeofremotesensingininsuranceareview
AT turveycg potentialanduptakeofremotesensingininsuranceareview