ICEYE, the world leader in sovereign intelligence from space, announced the launch of its natural catastrophe monitoring solutions for the global banking sector. The offering is designed to help financial institutions better understand, manage, and mitigate the growing impact of climate-driven credit risk.

As climate change accelerates, more frequent and severe natural catastrophe events are posing growing risks for banks and financial institutions. Beyond environmental impacts, events such as floods and hurricanes now threaten credit and capital by reducing property values and straining borrower finances through disruption and repair costs. This is driving higher mortgage delinquencies and defaults in flood-prone areas.

ICEYE’s monitoring solutions deliver timely, property-level impact data across multiple perils, including floods, wind, earthquakes, and wildfires. This hazard and impact data can be integrated directly into credit risk, valuation and stress-testing frameworks, supporting banks in managing non-performing loans, capital allocation and customer response strategies.

At the core of the offering is ICEYE’s Synthetic Aperture Radar (SAR) satellite constellation – the largest of its kind – which captures consistent, near real-time hazard and impact data 24/7 regardless of cloud cover or darkness. This enables the delivery of accurate measurements including flood extent and depth at building level, and detailed property-level determination of hurricane, wildfire or earthquake damage impact.

By integrating live NatCat insights into their risk management systems, banks can:

• Assess credit and capital risk: Identify loans backed by impacted collateral, estimate potential impairments losses, and inform capital allocation and stress testing
• Inform trading strategies: Understand the potential impact of events on investments
• Support vulnerable customers: Quickly identify affected borrowers and provide targeted relief, restructuring, or forbearance
• Strengthen ESG and climate disclosures: Demonstrate to regulators and investors how physical climate risks are monitored and managed using real event data

ICEYE also provides access to an extensive catalogue of historical natural catastrophe events.

This is key for banks, offering an extensive, global record of frequency and impact. This dataset enables financial institutions to validate and enhance risk and valuation models using real-world events, improving loss estimates, collateral assessments, and stress testing. At the same time, access to timely and objective perils impact data empowers banks to better serve their customers. By identifying those most affected, institutions can prioritise outreach and deliver meaningful support, strengthening trust and contributing to broader community resilience.

Stephen Lathrope, Senior Vice President of Solutions at ICEYE, said: “As climate-driven events become more frequent and severe, banks are facing a growing need to understand how these risks translate into credit exposure at a granular level. By enabling access to consistent, event- based data that delivers an asset-level view of impact, institutions can better quantify potential losses, stress-test their portfolios against real scenarios, and demonstrate a more robust and transparent approach to risk governance.”

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