As part of Lloyd’s Lab, Ocean Ledger validated that its satellite-derived products deliver more accurate loss predictions than Industry Benchmarks, provide real-time intelligence, uncover insights tailored to carrier-specific materiality thresholds, and differentiate risk advisory and broking for coastal assets.
The two case studies in this document demonstrate how Ocean Ledger enhances ratings models and "what if" analysis:
- Case study 1, Volusia County, Florida: We back-tested how our shoreline data products (if used at the time) would have better predicted insured losses from multiple, recent hurricane events in 2022 and 2024, in Florida. We compared our model to an ‘Industry Benchmark’ based on the only shoreline input available at the time from 2014 and found the following:
- 500 basis points in loss savings due to a 5% improvement in the existing pricing model.
- Storm surge risk in inland areas is repeatedly underpriced.
- 91% of analysed claims (252) saw model accuracy improvement vs. Industry Benchmark.
- Case study 2, Myrtle Beach, South Carolina: We focus here on a present-day ‘what if’ analysis for potential economic and insured losses should a Cat. 4 Hurricane hit Myrtle Beach and insurers relied on the current Industry’s view of storm surge risk (based on 2020 data) versus Ocean Ledger’s current view, taking into account shoreline changes (natural and man-made) in the last 5 years. Our models identified:
- Less property value at risk ($9 million).
- Huge difference (-41% to +89%) in view of storm surge impact on property value .
- +/- 2.5 meters difference in surge depth.
- Up to 105 meters cross shoreline gain likely due to beach nourishment programs.
The case studies are available here.
