Blackout Risk Model™ for Electrical Power Outages
The Blackout Risk Model™ helps predict the risk of electrical power disruptions. It puts a price tag on potential exposures so that insurers, companies, and governments can understand the risks and assess the value of resilience measures. It’s the first widely available tool to assess the risk and calculate the financial consequences of weather damage due to electrical outages.
Power outages cost U.S. businesses and society more than $100 billion per year and inconvenience millions of people. Now, corporate business risk and continuity managers, insurers, and emergency management officials can rely on our tool to assess which areas may be hardest hit, how long a blackout could last, and what it might cost.
Innovative blackout risk technology
The Blackout Risk Model is powered by Verisk and HSB, and it incorporates data and analysis from both companies. Verisk and HSB have specialized expertise in the blackout assessment field. HSB is part of Munich Re.
The model combines innovative technology with customized analysis services to help clients comprehensively understand and assess blackout risk. It lets you:
- gauge financial risk to U.S. business assets and liabilities from electrical outages
- plan a rapid response to minimize the effect on businesses and people
- optimize resilience investments and business interruption insurance
The modeling technology integrates possible weather conditions, satellite analysis of trees near distribution lines, proprietary knowledge of the electrical grid infrastructure, and detailed economic data. Weather perils analyzed include hurricane winds, storm surge, severe thunderstorm, and winter storm (snow, ice, wind). The model assesses long-term risks, as well as 0-5 day forecasts for real-time hurricane and winter storm events.
Retailers, manufacturers, and other businesses can conduct a quantitative cost-benefit analysis of backup power facilities and emergency response actions. Insurers can calculate their accumulated risk and loss potential. Businesses can understand and model their risk of electrical blackouts and then take action to mitigate the effects.
|Insurers and reinsurers||
|Corporate resilience decision makers||