Aon, a global professional services firm focused on risk and insurance-related advisory, has released an updated version of its Climate Risk Monitor platform, enhancing its ability to quantify physical climate risks and support decision-making across industries.
The latest release, CRM 3.0, introduces Heat Stress analytics that assess how combinations of temperature, humidity and exposure may influence health, productivity and wider economic performance.
Aon highlights that this addition is intended to give organisations a clearer view of how rising temperatures may affect both people and operations.
The platform also incorporates a new Cooling Demand function, reflecting increased reliance on cooling systems as global temperatures rise.
Aon notes that this development is important in understanding how energy use linked to cooling could increase emissions if not managed carefully, particularly as demand grows from sectors such as data centres supporting artificial intelligence.
Aon has expanded its drought and water stress modelling within CRM 3.0 as well. The firm states that this update combines changes in rainfall patterns with higher temperatures to better represent future water scarcity risks and their operational consequences.
Liz Henderson, Head of Climate Risk Advisory at Aon, commented: “As outlined in our 2026 Climate and Catastrophe Insight report, physical climate risk continues to evolve, bringing implications for communities, policymakers and the insurance market.
“Heat stress, rising cooling demand and increased water usage are quickly becoming everyday challenges for businesses and communities – affecting people, energy systems and IT infrastructure – especially as more data centers are built with the increased use of AI. By quantifying these impacts, organisations can better protect uptime, manage costs and build resilience for a hotter, more demanding future.”
Aon also points to further enhancements within CRM 3.0, including more detailed hazard data intended to support location-specific analysis across assets and portfolios. The firm explains that the updated system now places greater emphasis on observed weather events, rather than relying solely on reconstructed historical modelling, with the aim of better reflecting real conditions.
In addition, Aon has refined its baseline climate data using more recent observations and introduced bias correction techniques to improve alignment between climate models and observed trends, helping to improve consistency between current and projected conditions.
Usability improvements have also been made, with Aon enabling clients to upload data directly into the platform, reducing dependence on consultancy-led workflows and allowing faster iteration of risk assessments across business units.
CRM 3.0 further introduces global hazard mapping tools, which Aon says provide a consistent worldwide view of climate-related risks across multiple perils, extending long-term projections to the end of the century.
Aon states that CRM 3.0 is designed to support insurers, reinsurers and public sector organisations in improving risk selection, pricing and reinsurance planning through more detailed climate risk analysis. It forms part of the company’s wider portfolio of catastrophe modelling, risk management expertise and academic collaborations aimed at improving understanding of natural hazard risk.
