S&P Global Energy has announced a new data-sharing collaboration with Verisk, a global data analytics and technology provider to the insurance industry, designed to deliver climate catastrophe exposure data and insights to both the financial and insurance sectors.
A division of S&P Global, S&P Global Energy provides essential data, price benchmarks, and analytics for the global energy and commodities markets.
This partnership, which brings together the differentiating data of both companies, will, for the first time, allow these sectors to quantify both the insured and uninsured financial impacts of future climate events and near-term natural catastrophes, creating a new industry benchmark for climate risk intelligence, according to the announcement.
Recent record-setting losses from natural hazards highlight the urgent need for strong forward-looking risk analytics to protect assets and enable sustainable growth.
This partnership aims to address a crucial market gap, giving insurance and financial institutions a strong, auditable foundation to manage climate risk with greater precision than previously possible.
Through the collaboration, Verisk’s physically based near-present climate catastrophe risk data will be integrated into S&P Global Sustinable1 Climanomics physical climate risk platform, to advance the capability to assess insured versus uninsured losses due to climate change.
Incorporating insurance data fills a critical gap identified by regulatory authorities and emerging central bank stress tests, the firms highlighted.
Additionally, the S&P Global Sustainable1 climate-adjusted inland flood data will be incorporated with Verisk event simulations to generate a set of future-projected climate events modelled for the first time through 2050.
Insurers will be able to estimate future changes to their portfolio risk from climate change using this cutting-edge dataset.
Delivered via Verisk’s catastrophe risk modelling platform, Touchstone®, it translates the impact of climate change on the intensity of flood events and the resulting insurable loss.
The Verisk and S&P Global Energy integrated solution bridges risk intelligence gaps across four key industries: insurance, finance, asset management, and real estate.
In insurance, this solution helps reduce underwriting uncertainty for future flood risks and enhance portfolio stress testing, as well as capital allocation.
In finance, it delivers decision-grade data to meet regulatory disclosure requirements and shift from simple stress testing to active risk mitigation strategies.
For asset management, the integrated solution expands climate and physical hazards risk analysis with decision-grade data to optimize portfolios and understand uninsured risk.
It also combines robust modelling with risk insights to pinpoint growth opportunities and evaluate rural risk exposure for real estate.
“Financial institutions are under pressure to quantify climate risk with accuracy and transparency,” said Rob Newbold, President of Verisk Catastrophe and Risk Solutions. “By combining Verisk’s state-of-the-art catastrophe models with S&P Global Energy’s climate risk analytics, we’re empowering the market with a credible, and auditable foundation for strategic decisions addressing climate and physical risks.”
This integrated solution gives S&P Global Energy’s and Verisk’s clients greater agility and confidence to stress test their portfolios, evaluate climate objectives compliance, and navigate solvency and capital efficiency challenges.
“We’re committed to innovation, and we’re excited to offer this new risk solution to our clients and the marketplace to help them model and mitigate physical risks,” said Thomas Yagel, Head of Sustainable1, S&P Global Energy Horizons. “Together, we’re helping clients increasingly move from reactive climate-related compliance to proactive resilience—setting a new standard for how the industry approaches risk in a changing world.”
