Catastrophe risk modeller RMS has launched new climate change models to help its customers assess the near and long-term impacts of climate change on physical assets and their businesses.
The new models include RMS’s economic modelling framework which uses climate science consensus, including from the Intergovernmental Panel on Climate Change (IPCC).
The new models are expected to be available in June for major peril models North Atlantic Hurricane, Europe Inland Flood and Europe Windstorm.
The RMS climate change solutions also include climate change specialist advisory and consulting expertise and regulatory, environmental, social and governance (ESG) and TCFD support.
Most RMS models, including all major peril models, already incorporate the impact of climate change up until now, but more is required to meet the evolving and significant market needs.
Karen White, RMS CEO said: “Increasing incidence of wildfires, floods and hurricanes means that climate change insights need to be incorporated into financial decisions that are being made today, in parallel with long term strategic planning and meeting increasing regulatory, ESG and TCFD reporting requirements, and investor and customer demands.”
Eric Letourneau, SVP, Group Head of CAT Accumulation Management, QBE, added: “The insights on climate risk provided by RMS have enabled us to better understand climate-related risks and opportunities for our business, to report those insights to financial stakeholders, and to develop and test strategy for our business. We can embed these analytics in our business processes, confident that we have consistency with how we measure underwriting risk and capital requirements now and in the future.”