Reinsurance News

Jupiter announces launch of ClimateScore Global

17th August 2020 - Author: Matt Sheehan

Jupiter, a provider of predictive data and analytics for climate risk and resilience, has announced the launch of a climate risk analytics tool called ClimateScore Global.

ClimateScore Global predicts future physical risk from flooding, extreme heat, high wind, drought, wildfire, hail, and earthquake.

Its scope and granularity is designed to project how a portfolio of assets may be affected by climate change: the perils it will be exposed to, the driving segments and locations, and how that will change over time and across varying carbon emissions scenarios.

For insurers, it will enable companies to conduct portfolio stress tests and collaborate with clients to recommend risk engineering efforts with the largest resiliency ROI.

To this end, Jupiter has incorporated dozens of the scientific climate models coupled with machine learning, land use and elevation data, and models for hydrology, wildfire, severe weather, and other variables.

Features of ClimateScore Global include metrics to directly measure a range of perils, tailored spatial resolution, data available at five-year increments from 2020 through 2100, and delivery of data via on-demand reports, APIs, industry-standard data science tools, and interactive applications.

The tool also directly maps physical climate risk to financial impact by peril, region, asset, or sector and supports multiple climate change scenarios to quantify how risk responds to different political responses to climate action.

“ClimateScore Global is the most comprehensive, transparent framework for assessing global climate risk available to enterprises today,” said Rich Sorkin, CEO of Jupiter.

“It provides unique access to the underlying physical risk measurements, their uncertainty, and economic loss functions to help firms intelligently manage their capital planning and strategy issues and address rapidly increasing physical risks and regulations as well as shareholder demands, including increased TCFD reporting,” Sorkin explained.

“In an era where a pandemic has severely disrupted the global economy and revealed the fragility of supply chains, it will be especially important to focus on this next set of critical risks as the economy recovers.”

Existing Jupiter customers include Japanese insurance firm MS&AD, which has already deployed the ClimateScore Global platform to better understand the impact of long-term physical risks to their portfolio as well as their clients.

“Our clients need to quantify climate-related risk at the asset level across their portfolios over time and based on different scenarios, which is in accordance with Taskforce on Climate-Related Financial Disclosure (TCFD) recommendations,” said Terumi Nakamura, CEO of MS&AD InterRisk Research & Consulting.

“We’re looking to Jupiter and ClimateScore Global to help us model probable impacts of perils from extreme weather at hyperlocal resolution, based on different emissions scenarios. It is very attractive that their service allows us to analyze potential natural hazard risks on flood, high wind, and extreme heat today and for every 5 years through to 2100.”

Jupiter recently raised additional capital from P&C insurers Liberty Mutual and MS&AD, as well as from SYSTEMIQ, which specialises in sustainable economic systems.

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