RMS extends suite of climate change models
RMS has expanded its latest suite of RMS climate change models to enable customers to strategically assess the short- and long-term impacts of climate change across a wider range of perils and regions.
RMS climate change models address the growing need for climate change analysis in operational underwriting and portfolio management activities.
The growing demands of regulatory requirements such as those of the Task Force on Climate-Related Financial Disclosures (TCFD) and the Network for Greening the Financial System (NGFS).
These new RMS climate change models will complement the existing suite launched in 2021, including the Europe Flood, Europe Windstorm and North Atlantic Hurricane climate change models.
Using RMS models, customers will be able to simulate the effects of climate change on four greenhouse gas concentration trajectories (known as Representative Concentration Pathways or RCPs) at any time between 2020 and 2100.
Julie Serakos, Senior Vice President, Model Product Management, RMS, said, “The effects of climate change so far are already built into RMS models, including all major peril models.
“What is becoming increasingly important for companies is the ability to anticipate the potential impacts of climate change, across portfolios, risks and liabilities. There is also a growing need to capture sensitivity around the potential impacts of historic climate change, for example in perils where consensus on this is limited.
“Only with detailed, consistent and reliable information about future climate change risks are companies and leaders able to make informed long-term strategic decisions to better reflect their business interests. , stakeholders and regulators.
“As disasters with a climate-related footprint, such as floods, wildfires and hurricanes, increase in incidence and severity, it is also clear that this is a problem not only for the future, but which needs to be addressed strategically today, with the best tools available to give the clearest insights.
Paul Wilkinson, Head of Aggregation and Risk Strategy at Canopius, said: “The RMS models allow adjustment of short and long term time horizons, combined with the full flexibility and range of RCP scenarios ( Representative Concentration Pathway) of the IPCC.
“Climate change presents one of the most significant risks for the re/insurance industry. It is important to us to incorporate the latest scientific knowledge relating to climate change into our risk analyzes in a way that can be tailored to our needs and fully integrated into key business operations, such as portfolio management, underwriting short term and business planning. ”