Location intelligence is an important tool for property insurance claims managers. In a major catastrophe, insurers can plot the area of impact and get a total of aggregate risk in the area.
Some reinsurers use the catastrophe models of third-party vendors; others have opted to develop their own internal models to estimate losses. But despite significant improvements in data collection and computing power, there will always be some level of uncertainty in Cat models, especially those attempting to predict losses from human-induced disasters like cyber attacks or nuclear terrorism.