Willis, the insurance broking, risk advisory and consulting arm of WTW, has introduced an upgraded version of its Climate Diagnostic solution, aimed at helping organisations assess and respond to the growing impact of climate-related risks on property insurance markets.
The updated tool forms part of WTW’s Risk IQ platform and, according to Willis, provides advanced climate risk analysis capable of evaluating both current and future exposure to flooding, windstorms and other significant climate hazards. The solution is designed to measure the potential effects of these risks on physical assets, operational activities and supply chains.
Willis noted that the insurance sector is facing increasing pressure as extreme weather events become more frequent and severe. As a result, insurers are either raising premiums for property coverage or reducing their presence in areas considered highly exposed to climate-related threats. The company said this trend is expected to continue as climate risks intensify, potentially creating long-term challenges for businesses, communities and economies.
To support clients in managing these evolving risks, Willis has incorporated Climate Diagnostic into its broking processes and risk engineering assessments. The company said the enhanced platform allows brokers and risk managers to analyse and quantify the effects of acute climate events, including severe flooding and windstorms, on property portfolios and business interruption exposures under both present-day and future climate scenarios.
Commenting on the launch, Peter Carter, Head of Climate Practice at Willis, commented: “The volatility and frequency of climate hazards are increasing. Embedding Climate Diagnostic in broking workflows and engineering surveys sets a new industry standard, with clients benefiting from a built-in scan of the risk against ongoing climate change volatility.”
Willis explained that the solution uses scenario-based modelling to assess climate-related exposures across an organisation’s asset portfolio. The company said this enables businesses to gain a clearer understanding of their vulnerability to insurable climate risks while testing the resilience of their risk management and financial strategies over different time horizons.
According to Willis, the insights generated by Climate Diagnostic can help organisations incorporate resilience and adaptation measures into their risk transfer planning. The company added that the platform also supports the evaluation of alternative approaches to managing risk, including physical adaptation projects and alternative risk transfer arrangements.
Willis further stated that Climate Diagnostic can estimate the financial value of assets exposed to extreme weather events and longer-term climate trends. This capability, the company said, allows organisations to assess whether their existing risk financing and insurance strategies remain appropriate as climate-related volatility increases.
Carter added: “Early sighting of assets exposed to climate-related perils gives risk managers the chance to build resilience, improving future insurability before disaster strikes.”
Willis said the enhanced solution includes interactive mapping tools that enable users to visualise climate risks and asset exposures across different regions, climate scenarios and future timeframes. The company noted that these tools can help organisations identify high-risk locations, assess individual assets and understand the financial implications associated with specific climate hazards.
The company added that Climate Diagnostic has been specifically developed for use within property broking and engineering workflows, allowing climate-related considerations to be incorporated more effectively into risk management decisions. Willis also stated that the underlying data is scientifically validated and provides clients with an independent, forward-looking view of climate-related insurance risks.
