Deloitte sees AI aiding insurers in climate risk resilience

AI could prevent around $70b in infrastructure losses yearly.

The global insurance industry could see reduced losses from natural disasters through use of artificial intelligence (AI) in infrastructure planning and resilience, according to a new report by the Deloitte Centre for Sustainable Progress.

The report, AI for Infrastructure Resilience, estimates that AI could prevent around $70b in infrastructure losses annually by 2050. 

It highlights how AI-powered solutions—from predictive maintenance and early warning systems to post-disaster damage assessments—can help mitigate risks tied to increasingly severe and frequent natural disasters.

Insurance losses from storms and floods are expected to rise significantly. Average annual damages from natural catastrophes are projected to grow to between $460b and $500b by 2050. 

Deloitte estimates that storms alone could account for $30b in avoidable losses per year with the application of AI-driven tools.