Transforming Weather Forecasting and Risk Management with Understory

Introduction

Understory, a company founded in 2014, has revolutionized weather forecasting by deploying a network of ground-level weather stations across the globe. These stations, known as Dot, provide real-time data on wind, rain, hail, temperature, pressure, and humidity at an unprecedented level of detail.

Improving Weather Data

The traditional weather data used in forecasting was outdated, prompting Understory to create a more advanced weather dataset with its innovative weather stations. By measuring weather conditions at 125,000 times a second, Understory gained a deep understanding of ground-level weather phenomena.

Building Catastrophe Models

With the wealth of data collected from the weather stations, Understory was able to develop global catastrophe models to assess risk to individual properties. These models were validated by reinsurance partners, leading to the creation of software-as-a-service products and data services for risk management.

Expansion into Insurance

Understory's founders, Alex Kubicek and Bryan Dow, saw an opportunity to use their data for more than just forecasting. They partnered with Neil Irwin, a veteran of the insurance industry, to establish their own insurance company. Understory began offering parametric insurance solutions tailored to mitigate severe weather risks.

Parametric Insurance Offerings

One of Understory's notable insurance solutions is Dealers Open Lot insurance, which provides risk management for auto dealerships in the U.S. By leveraging early notifications of weather events, Understory has helped auto dealers save millions of dollars in potential damage.

Growth and Innovation

Understory has experienced rapid growth, with a 500% year-over-year increase in the past year. The company is now venturing into the renewable energy sector, providing risk mitigation technology for solar farms. Through predictive models that offer 45 minutes of weather event notice, Understory is helping solar farm operators save significantly on hail repair costs.

Impact on Renewable Energy Sector

The renewable energy industry, particularly solar farms, faces weather-related challenges that can result in significant financial losses. With Understory's technology, solar farm operators can mitigate these risks and reduce potential losses by up to 50%. By anticipating weather events and taking proactive measures, solar farms can safeguard their investments and operations.

Conclusion

Understory's innovative approach to weather forecasting and risk management has not only transformed the way weather data is collected and analyzed but has also had a profound impact on industries such as insurance and renewable energy. By combining advanced technology with real-time data insights, Understory continues to pave the way for more effective risk mitigation strategies in the face of unpredictable weather conditions.