Reinsurance News

JBA releases Climate Change Analytics data suite

6th October 2020 - Author: Katie Baker

Flood risk modeller, JBA Risk Management (JBA) has announced the launch of its new Climate Change Analytics data suit.

This new solutions has been developed to help banks, lenders, investors, and the wider global financial sector to understand the potential long-term impacts of climate change and to meet regulatory requirements.

The launch of Climate Change Analytics represents the largest range of data available for financial services, says JBA.

It comprises the full range of Representative Concentration Pathways (RCP) climate scenarios and represents every five-year time period from 2025 until the end of this century.

JBA has provided the data suite in a bid to better understand potential flood risk under a changing climate.

Climate Change Analytics has been released following Climate Week 2020, and at a time during which the resilience of our society and economy to climate change is under intense scrutiny.

Lenders and asset managers can use JBA data for property screening, regulatory stress testing, impairment charge assessment, portfolio management, and to understand potential long-term property devaluation due to climate change.

The data is available in a format that can be easily applied to in-house data at property-level for high resolution flood risk analysis.

Vanessa Balmbra, Property and Financial Sector Specialist at JBA, said: “Developing Climate Change Analytics has been a true collaborative process. We’ve combined our extensive flood science expertise with the insights learned from our experience in global re/insurance and our long-standing relationships with the UK banking sector.

“We’re confident this resultant data will help global organisations plan for their future and understand possible flood risk under different climate scenarios.

“Regulators have been discussing climate change for a while now. It was identified as a key new direction for research in the 2020 Bank of England Agenda for Research; there was a climate change component to the 2019 Insurance Stress Test – and now there is anticipation of possible new regulatory requirements and further climate change stress testing for both insurance and the wider financial services.

“This is a truly dynamic data suite, regularly updated to include the latest flood risk science, and can be easily adapted to meet the specific needs of international banks, lenders and asset managers.

“Giving a long-term perspective on the potential impacts of climate change under a range of possible future climate scenarios, the data helps banks, lenders and the wider financial sector to analyse the scale of the climate change challenge.”

Robert Stevens, Head of Property Risk at Nationwide Building Society added: “We’ve been working with the JBA team for five years now and their sophisticated data is vital in helping us understand our flood exposure and the financial risk it poses.

“JBA’s data effectively identifies which locations in the UK are at risk of flooding, which allows us to make upfront decisions on new mortgage originations to inform our long-term risk management.”

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