WTW to add climate data in broking property renewals - Insurance Business
WTW to include climate data in broking property renewals | Insurance Business America
The inclusion of climate data will enable clients to evaluate future exposures to climate change, WTW said. By analyzing a range of climate indicators, companies can gain insights into how climate change may impact their portfolio by 2050. Some key indicators include extreme heat, rainfall, and fire weather risk. Assessing these indicators can help organizations contextualize climate change and its potential effects on their property assets.
“When analyzing the property portfolio of a client, it is essential to provide data on climate related issues which can impact on property assets,” said John Merkovsky, head of risk and analytics at WTW. “This enables risk managers to have an overview of both today and mid-century assessments of potential future risk across their risk portfolio.
“We are leading the way in the use of data and analytics to help organizations optimize their risk mitigation strategies by providing bespoke assessments of their property risk portfolio and the impact of climate change. This is just the beginning of the climate analytics and risk management capabilities we will be introducing as part of our evolving broking proposition.”
Initially launched with large North American clients, the new approach to evaluating property risk and renewals will expand and be rolled out to additional regions and organizations throughout 2023, WTW said.
Earlier this month, WTW announced a partnership with global law firm Clyde & Co to help clients manage climate risks. The broker also recently announced the expansion of a program to help protect the Mesoamerican Reef.
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Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”