Black Knight solution identifies climate and natural risks to properties

Black Knight Inc. has launched its new suite of climate and natural hazard risk data solutions to help participants, investors and mortgage industry analysts identify properties impacted by natural disasters and mitigate future climate-related risks. Comprised of integrated datasets and portfolio analytics, but also available as standalone offerings, the suite of climate and natural hazard data solutions provides property-level insight into both the potential impact of current weather events, as well as gauges and helps users manage the level of weather risk for assets in the future.

“With each passing year, it becomes more apparent that we have entered an era of increasingly large, destructive, and frequent weather events,” said Ben Graboske, president of Black Knight Data & Analytics. “The impact of these events on life and property can be immense, with damage reaching billions of dollars each time. And the risk they pose to those with a financial interest in the collateral that lies on the path to these events is significant and growing.Mortgage lenders, managers, investors and many others with an interest in the housing industry have always turned to Black Knight for actionable insights to help them manage risk, and climate risk is certainly no exception.

The suite of climate and natural risk data solutions combines Black Knight’s vast data and analytics assets with public and private datasets and proprietary risk scoring algorithms to provide unparalleled insight into climate risk, both proactively and in the moments immediately following a climate change. – related event.

The suite includes Disaster Alerts and Climate Risk Rating Disaster Alerts – the dataset behind the Early Warning Suite in the Black Knight Actionable Intelligence Platform (AIP). The solutions use satellite imagery, topographic mapping and other datasets to explore affected areas and identify properties at risk, in many cases before FEMA disaster declarations. By focusing on specific properties that have likely been affected, rather than county-wide areas of potential activity, Disaster Alerts helps users act both quickly and effectively to protect costs and resources.

The suite of climate and natural hazard data solutions complements Disaster Alerts timely actionable insights with climate risk scoring. Proactively monitoring portfolios of loans, properties, pools or securities, Climate Risk Scoring assesses the climate-related risk characteristics of individual properties and assigns a score to help model future risk. Leveraging Black Knight’s environmental, social and governance (ESG) data, the solutions can also help investors guard against this risk by identifying “green” (i.e. sustainable) pools certified by agencies of mortgage securities guaranteed by agencies for investment.

The suite of climate and natural hazard data solutions covers more than 95% of residential properties in the United States and is available through the Black Knight Rapid Analytics (RAP) platform, as well as many other datasets on Black Knight’s real estate and housing finance and pre-packaged analytics. Individual items are also offered as standalone data and analytics purchases.

“According to a National Oceanic and Atmospheric Administration report, the United States experienced 20 separate billion-plus climate and weather events in 2021, making it the third-costliest year on record with damages. estimated at $145 billion,” Graboske continues. “Black Knight clients already rely on our unparalleled data and analytics offerings to monitor their portfolios for key risk factors, such as loan-to-value ratios, equity and liens. With the suite of climate and natural hazard data solutions, we can now also provide a 360 degree view of their climate risk – wherever they are in the real estate and housing finance continuum. .

Image: Kelly Sikkema on Unsplash

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