From Manual Construction to AI-Driven Scenario Emergence: Rethinking Catastrophe Risk Modeling

According to the United Nations Office for Disaster Risk Reduction (2025), the average annual cost of natural catastrophes increased from 70--80 billion USD between 1970 and 2000 to 180--200 billion USD between 2001 and 2020. Reports from organizations such as the IFOA and the WWF highlight the need for the insurance sector to adapt to this rapidly evolving context by developing medium- to long-term strategies that go beyond the one-year horizon of prudential regulations such as Solvency II. This paper introduces an artificial intelligence framework based on Conditional Generative Adversarial Networks (Conditional GANs) to generate future spatio-temporal trajectories of climatic indices. The approach focuses on the Soil Wetness Index (SWI), a key indicator used in France to assess drought severity. Drought accounts for approximately 30% of the indemnities paid under the French natural catastrophe insurance scheme. The proposed model, SwiGAN, simulates plausible drought propagation patterns up to 2050 for a region of France particularly exposed to this hazard. By generating realistic sequences of SWI maps, SwiGAN provides insights into drought dynamics under climate change scenarios and supports the design of adaptive risk management and insurance strategies. The methodology is also generalizable to other climate-related perils and actuarial applications such as economic scenario generation.

Explicit onshore tsunami inundation forecasting can improve public risk awareness, but deterministically predicted inundation boundaries under highly uncertain conditions, such as near-field tsunamis generated by megathrust earthquakes, may falsely imply safety outside the boundaries. Consequently, current warnings primarily target coastal tsunami height, not onshore inundation. Although machine learning enables instant inundation predictions, they remain deterministic, lacking uncertainty quantification. Here, we develop a probabilistic ensemble model based on a conditional diffusion model (a type of generative AI) that reconciles accuracy with calibration. Validated with the 2011 Tohoku-oki earthquake data, our model faithfully tracks the postearthquake uncertainty decreasing over time while accurately predicting inundation depth and extent. Our framework shows that generative AI can shift tsunami forecasting from determinism to probabilism, providing a foundation for next-generation early warning.

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.