A new computer tool shows the consequences of climate change for ordinary house-owners, now and in future. This is a huge advantage for consumers and for insurance providers, which are supporting the research project at Aarhus University, Business and Social Sciences with funding of 4 million Danish kroner.

Many people have become acutely aware of the consequences of climate change in recent years: During a gale, the sea eats away at the Danish North Sea coast, threatening to swallow up several holiday homes at a time, and in Norway many people are left homeless in the wake of Hurricane Dagmar.

Throughout Scandinavia climate damage is costing both consumers and insurance providers many billions of kroner each year.

Leading international climate researchers at the NORD-STAR research centre, which is based at Aarhus University Research and Educational Centre Herning (AU Herning), Aarhus University, School of Business and Social Sciences, have now been given 4 million Danish kroner to fund their research. They are developing a new computer tool which will make it possible for home-owners and insurance providers to see the risks to which properties will be exposed as a result of climate change, now and in future.

The new computer tool is a so-called web-based visualisation tool, which shows very clearly the severity of the consequences of climate change and how they will affect local areas.

Lower insurance premiums
With the climate tool, private house-owners will, among other things, be able to take out insurance against climate damage caused by, for example, flooding before the event. This makes for better risk assessments and means that the insurance providers will be able to reduce premium payments for policyholders who take the right preventative steps.

However, in future climate change will come to affect areas which were formerly considered no-danger zones. The tool will help house-owners and developers take the necessary steps to protect new buildings by using the right construction materials from the outset.

Danish local authorities and US researchers
Even though the tool is designed for house-owners and insurance providers, it will prove valuable in many other contexts. For example, the local authorities may use it in their urban planning. When designating new plots for development, the climate tool may help planners spot the most vulnerable areas.

However, the tool may also be useful outside the Scandinavian countries and in the research community. Michael Goodsite, Director of NORD-STAR and Centre Director of AU Herning, explains:

- The finished tool will be ready for use throughout Scandinavia from day one. And with minor adjustments, the work currently being carried out by NORD-STAR can be applied anywhere in the world, and by other research projects. Already a number of US researchers have expressed an interest in the project, says Michael Goodsite.

NORD-STAR researchers possess expert knowledge
NORD-STAR stands for Nordic Strategic Adaptation Research, and the researchers are experts on climate change adaptation. The centre is an international, Scandinavian research centre which has attracted leading climate experts from all the Scandinavian countries. The centre is based at AU Herning at Aarhus University, School of Business and Social Sciences.

According to Michael Goodsite, that is the very reason why the insurance providers decided to grant funding of 4 million Danish kroner to NORD-STAR. At the same time, AU Herning benefits hugely from being part of the NORD-STAR centre because several researchers are involved in the project. On the other hand, AU Herning is also a perfect base for NORD-STAR:

- AU Herning has very strong relations with the business community, and we focus strongly on research with practical applications. This is something which the insurance providers have sensed in their collaboration with NORD-STAR, and it has definitely left a very positive impression, says Michael Goodsite.

Facts

• The visualisation technology is expected to be ready for use in 2014.
• The project is supported by the Scandinavian insurance providers If, Codan, Tryg and Gjensidige.
• NORD-STAR is one of three Nordic centres of excellence for climate research. It has received funding of 30 million Norwegian kroner from NordForsk, an organisation under the Nordic Council of Ministers.
  Read more about NORD-STAR here

Further comments


Michael Evan Goodsite, Director of NORD-STAR
Aarhus University, School of Business and Social Sciences
Centre Director, AU Herning
Email: michaelg@hih.au.dk
Tel.: +45 8716 4747
Mobile: +45 6011 2557
Web: Michael Evan Goodsite