Global data analytics provider Verisk has announced the release of climate change projections for its U.S. Hurricane and Caribbean Tropical Cyclone Models to help quantify climate-related, extreme event losses and their potential evolution over the next few decades.
The climate change projections provide a probabilistic view of future risk in 2030, 2050, 2075 and 2100 across four various scenarios.
Verisk says that insurance and reinsurance companies can use these projections to investigate how future climate change may impact their full distribution of modeled loss, including average annual losses and key return period metrics that inform underwriting and risk transfer strategies.
“Insurers, reinsurers, corporations and investors are all actively working to assess the impacts of climate change on their portfolios as they respond to stakeholders and manage their business,” noted Bill Churney, President of Extreme Event Solutions at Verisk.
“Our climate change solutions help them understand the growing risks and rising losses from the physical damage and liability aspects of climate change, enabling them to thoughtfully prepare operational and strategic resilience initiatives that meet the needs of all stakeholders.”
“Catastrophe models have been developed to model the financial impacts of extreme weather,” added Peter Sousounis, Vice President and Director of Climate Change Research at Verisk Extreme Event Solutions.
“By frequently updating catastrophe models and applying a probabilistic modeling approach, Verisk extreme event models are designed to reflect a near-present (0-10 year) view of climate risk. Our projections for the longer-term (10+ years) view of risk leverage a unique methodology where we downscale the results of high-resolution GCMs.”
