The property and casualty (P&C) insurance sector is under intensifying pressure as natural disasters become more frequent, severe, and costly. Hurricanes, floods, wildfires, and other climate-driven events are reshaping risk profiles and forcing insurers to evolve their underwriting strategies.
As a result, the adoption of advanced technologies such as artificial intelligence (AI), geospatial tools, and climate analytics to enhance risk modelling, claims response, and mitigation strategies is becoming table stakes among insurers.
“It’s a fascinating time in our industry,” said Melissa Goto (pictured), deputy senior vice president, specialty lines, North America at Intact Specialty Solutions.
“We’re seeing unprecedented weather activity, and that makes this conversation both timely and necessary. The question is how do we, as insurers, leverage technology not just to assess and price risk, but to help our clients prepare and recover when events inevitably occur?”
The integration of geospatial data and AI-driven models is transforming underwriting, Goto told Insurance Business. High-resolution imagery now enables underwriters to assess building conditions, such as roof structure and surrounding vegetation, directly from their desks.
Meanwhile, AI-powered simulation models can project the potential impact of hurricanes, floods, or surges under different climate and carbon-emission scenarios.
“Traditional catastrophe models are evolving,” Goto said. “We’re seeing advances in computing power that let us process more data, faster, and generate simulations that account for climate change variables. That’s critical for assessing risk in areas like hurricanes and flooding. Wildfires are still more difficult to predict, especially where human activity plays a role, but we expect AI-driven simulations will give us better insights there as well.”
Intact Insurance Specialty Solutions has invested over $500 million in advanced technology, including geospatial tools such as drones and satellites, high-resolution aerial imagery, and climate analytics. The company aims to push underwriting accuracy beyond historical weather data and into forward-looking climate scenario modelling.
While the scale of Intact’s technology investment is significant, Goto emphasized that advanced analytics are not replacing traditional underwriting fundamentals. Instead, they complement longstanding practices such as site visits and risk control consultations.
Intact leverages in-person assessments from hundreds of risk control representatives globally. “We find that risk control is particularly valuable, not only in assessing risk and conducting site visits to validate the information we gather from technology, but also in helping insureds prepare for natural disasters,” Goto said.
“That includes reviewing whether a business continuity plan is in place and, if not, guiding clients on how to build one. It also covers practical measures such as storm shutters or reinforced roofs.
“In this way, risk control serves as both a consultative resource and an advocate for insureds, complementing our underwriters’ expertise and broker relationships, while balancing the insights provided by technology, AI, and evolving models.”
This balance is particularly important in high-exposure regions like California, the Gulf Coast, and the Southeast, where climate risk is intensifying and coverage availability is often a concern.
Over the next decade, Goto expects AI to play an even greater role in specialty lines. Simulation technology will enable the industry to anticipate climate outcomes under various emission pathways and timeframes, allowing insurers to refine their pricing and mitigation strategies.
“AI is still somewhat in its infancy,” said Goto. “But I think we’ll see broader use of AI alongside underwriting fundamentals, risk control, and boots on the ground.”
Another factor shaping the market is reinsurance. Rising catastrophe losses have pushed reinsurers to tighten capacity and adjust pricing. Goto acknowledged the impact of reinsurance pullback but stressed the importance of collaboration.
“We work closely with our reinsurers, as does the broader industry,” she said. “Capacity and pricing can be challenging, particularly in hurricane-prone states, and this does influence our approach.
“But we align with reinsurers to provide the best solutions for insureds and brokers. We know this environment is difficult for brokers to navigate.”
Intact’s strategy reflects a broader trend in the P&C market, where data-driven underwriting is becoming standard. This means brokers should expect more conversations around geospatial analytics, AI simulations, and climate scenarios when placing accounts.
At the same time, risk control consultation remains a central focus. Carriers will increasingly expect insureds to implement pre-loss measures, such as physical property upgrades and continuity planning, to secure coverage.
Finally, Goto believes capacity pressures will persist, especially in catastrophe-prone regions, making early engagement with carriers and reinsurers critical. She encouraged brokers to lean on carriers’ expertise as trusted advisors.
“Our purpose is to help people in good times and bad,” said Goto. “Between our model tools, underwriters, and risk control teams, we specialize in these areas and want to work together to find solutions for their clients.”
