Define clusters grouping together geographic areas of mutualization
Posted: Wed Feb 12, 2025 6:44 am
For an insurer or a public actor, the interest of this first map is to highlight the geographical areas with the same climatic profile in order to carry out risk and exposure analyses. From these first elements, other groupings can be made to construct "climatic" risk zones with homogeneous profiles, essential for pricing, pooling and prevention...
The objective is to bring together departments that would experience the same changes, in the face of extreme climatic events. The previous map makes it easy to construct these clusters. These groupings illustrate what mutualization could look like in metropolitan France and Corsica. Note that the climatic specificities of certain geographical areas, depending on the calculation grid considered, could lead to transregional risk mutualizations, i.e. common to one or more regions. We also observe that some departments, not adjacent, are still grouped with others, such as the department of Pyrénées-Orientales (Perpignan) which is in the same group as the department of Hérault (Montpellier).
The second map, below, was spain phone number list constructed following the principle of majority voting for the determination of the departmental cluster. It represents a first level of mutualization through groupings at the departmental level.
Figure 2: Construction of clusters in metropolitan France and Corsica based on historical climate data
Source: Garrido, X. Milhaud, and A. Olympio. On the definition of a French actuarial climate index, 2023.
With this methodology, insurers could consider exploring the pricing techniques used in parametric insurance to offer risk coverage solutions. Policyholders can thus access insurance products adapted to their geographical situations. Policymakers could draw inspiration from it to develop prevention plans and better manage climate risks, at ever finer scales.
The objective is to bring together departments that would experience the same changes, in the face of extreme climatic events. The previous map makes it easy to construct these clusters. These groupings illustrate what mutualization could look like in metropolitan France and Corsica. Note that the climatic specificities of certain geographical areas, depending on the calculation grid considered, could lead to transregional risk mutualizations, i.e. common to one or more regions. We also observe that some departments, not adjacent, are still grouped with others, such as the department of Pyrénées-Orientales (Perpignan) which is in the same group as the department of Hérault (Montpellier).
The second map, below, was spain phone number list constructed following the principle of majority voting for the determination of the departmental cluster. It represents a first level of mutualization through groupings at the departmental level.
Figure 2: Construction of clusters in metropolitan France and Corsica based on historical climate data
Source: Garrido, X. Milhaud, and A. Olympio. On the definition of a French actuarial climate index, 2023.
With this methodology, insurers could consider exploring the pricing techniques used in parametric insurance to offer risk coverage solutions. Policyholders can thus access insurance products adapted to their geographical situations. Policymakers could draw inspiration from it to develop prevention plans and better manage climate risks, at ever finer scales.