90Data and ModelsLloyd’s Lab Impact Report 91 Infrastructure health checks that New risk pro昀椀les help to plug the liability gap Since completing the tenth cohort of Loyd’s Lab, Cohort 4, 2020 and Cohort 10, 2022 Value.Space has begun to consider new and unique risk pro昀椀les emerging as a consequence of climate change. Rising temperatures and increased rainfall are creating soil conditions that increase the risk of subsidence, placing a greater strain on large Following its initial involvement with the Lloyd’s Lab, Value.Space was infrastructure assets, but also raising exposure levels able to develop its existing, highly cost-e昀昀ective structural survey tool for other property types. There is a growing need among insurers for a survey for infrastructure owners, powered by satellite data, and launch it into tool to assess property and liability exposures for the global insurance market. The ability to make detailed structural speci昀椀c assets across a range of sectors, and to measure the growth of those exposures across health checks for infrastructure assets is now accessible to a broad portfolios. The timing, for Value.Space and Lloyd’s, couldn’t be more appropriate. range of carriers. “ In terms of the liability model, there is big Previous Lab experience advantage for the market in being able to The genesis of what Value.Space o昀昀ers today was understand the risk profile of a dam or a mine realised in cohort four of the Lloyd's Lab, in early 2020. The company was paired with mentors including an really quickly, and in giving a better estimate underwriter, a risk engineer, and a 昀椀nancial controller, of what the contract is going to cost the who supplied use cases that helped de昀椀ne the speci昀椀c challenges faced by insurers when assessing the Re-discovering the bene昀椀ts of the Lloyd’s Lab insured. Brokers can now check the rate that structural integrity of large infrastructure assets. Value. It was to solve this issue that Value.Space returned to is being applied very quickly, which means Space then tailored its o昀昀ering for insurers, to provide the Lloyd’s Lab in cohort 10. a survey tool that was faster, more accurate and more the insured is getting coverage quicker, and cost e昀漀cient than any they had used before. One of the major bene昀椀ts of working on this problem in the broker gets the business quicker, the Lab was the ability to shape a liability model with constant feedback from the industry. which is creating more enduring relationships Addressing the liability protection gapAs with the property model, the ability to carry out with buyers." portfolio assessments across hundreds of assets, Following cohort four, Value.Space had an e昀昀ective would be prohibitively expensive if done manually. The Reijo Pold, Founder & Chief Strategy Ocersolution for infrastructure property risks, developed in Value.Space survey tool is ten times faster than manual concert with the insurance industry. However, as alternatives, and 25 times more cost-e昀漀cient. word-of-mouth spread about their solution, they became aware of another pressing concern for The analysis produced also enables insurers to adjust infrastructure insurers.their risk-based pricing, drive remediation processes, improve their combined operating ratio, and take Alongside the global protection gap for uninsured control of their loss ratio for liability exposures. catastrophe losses - which for 2022 was estimated by Swiss Re at $151bn - there is a huge liability protection gap that is less well-documented. In addition to prospective property losses, what insurers want to understand about the risk of breaches at dams or tailing storage facilities, is the dollar amount of potential liability claims from these events. Until now, these have proved di昀漀cult to calculate. © Lloyd’s