A Wasserstein GAN-based climate scenario generator for risk management and insurance: the case of soil subsidence

Traditional catastrophe (CAT) risk models rely on costly manual construction to generate extreme weather scenarios, an approach largely unchanged since the 1990s. As climate extremes intensify, this creates mounting challenges to the entire risk transfer chain. This study proposes the TAISE framework, which repurposes AI weather forecasting models to produce coherent extreme weather sequences at a fraction of traditional costs. Through self-iterative generation, the framework produces continuous global atmospheric fields from which extreme events emerge. A proof-of-concept experiment demonstrates an order-of-magnitude reduction in computational cost compared with conventional methods, while capturing temporal continuity and cross-regional correlations absent in snapshot-based approaches. These findings suggest a pathway toward democratising catastrophe risk quantification and enabling dynamic, comprehensive portfolio assessment for insurers, reinsurers, ILS fund managers and public-sector risk managers.

Reliable assessment of tropical cyclone risk is limited by the short and spatially uneven historical record, especially for rare, high-intensity landfalls that dominate insured loss. We present WHITS, the Wind-focused Hurricane Interactive Track Simulator, a non-parametric semi-Markov model that generates a 10,000-year global synthetic catalog of tropical cyclone tracks. WHITS builds new storms by resampling variable-length segments of historical tracks, with segment choices conditioned on local wind speed, location, storm age, and forward motion. This structure preserves both the statistical grounding of the historical record and a form of system memory along realized storm pathways. The resulting catalog reproduces observed track density and the annual probability that hurricane- or typhoon-force winds pass a given location across the major tropical cyclone basins. WHITS is designed to support climate risk analysis, insurance applications, and extreme event research over operational planning time scales by providing a large, low-bias sample of physically plausible storms. This low-bias design is important for applications in which introduced bias cannot simply be corrected after the fact and small errors in storm frequency, track, or intensity can substantially affect loss estimates. Because loss accumulates along the storm path, track geometry matters: storms that loop, stall, or turn sharply can produce damage footprints that differ fundamentally from straight-moving events. By preserving these irregular shapes while greatly expanding the sample of plausible storms, WHITS provides risk analysts, insurers, and coastal planners with information unavailable from observations alone.

AI-driven flood digital twins demand fast hydrodynamic surrogates for ensemble forecasting and observation assimilation. Yet even GPU-accelerated two-dimensional shallow water equation (SWE) solvers still require $\sim 55$ minutes per $96$-hour run on a $\sim 4.2$-million-active-cell metropolitan basin (the DesPlaines River basin at $30\,\mathrm{m}$ resolution), making such workloads prohibitive at native resolution. We present the Conditional Latent Dynamics Network (CLDNet): a low-dimensional latent neural ODE driven by rainfall, paired with a coordinate-based decoder conditioned on static terrain (elevation, slope, Manning roughness) that reconstructs depth and discharge at arbitrary query points. Pointwise decoding decouples memory from grid size and handles irregular watersheds natively, enabling metropolitan-scale training on a single compute node and direct queries at exact gauge coordinates without raster snapping. We evaluate CLDNet on a synthetic $250{,}000$-cell Texas benchmark and on a new DesPlaines case study of $114$ real-rainfall StageIV storms whose reference simulator we validate against United States Geological Survey (USGS) gauges at the April2013 flood-of-record (Nash--Sutcliffe efficiency $0.57$--$0.94$ on mean-recentered water-surface elevation). CLDNet roughly halves the relative root-mean-squared error of an unconditional baseline, outperforms regular-grid VAE--ConvLSTM and FNO baselines on the Texas benchmark (both presuppose a Cartesian grid and do not apply to the irregular Des~Plaines watershed), reaches a critical success index of $\approx 86\%$ at the $0.5\,\mathrm{m}$ inundation threshold, and produces a full $96$-hour basin-wide forecast in $\sim 29$ seconds -- a $\sim 115\times$ speedup.