Introduction
Climate change is affecting extreme weather, a key part of natural catastrophe risk written by the insurance and capital markets. Quantifying the impacts of climate change on insurers’ underwriting, risk management and capital strategies is critical for risk-informed decision-making and sustainable growth.
Resilience will play an increasingly important role in the affordability and availability of insurance. Understanding the impact of these factors on reinsurance markets is key for adapting risk-management strategies and embracing a holistic risk-management approach.
Guy Carpenter, a Marsh business, has extensive expertise in insurance and reinsurance market dynamics, as well as a variety of solutions for assessing current and future climate risk, including improving risk data quality and modeling resilience measures to help businesses and insurers alike understand and manage extreme weather risk and support longer-term insurability.
Insurability in a changing climate
How Guy Carpenter can support insurers
Guy Carpenter is ready to support insurers in developing their analytical capabilities through our suite of Analytics & Advisory Products, including:
- Quantification of risk through probabilistic catastrophe models, both third-party and in-house.
- Model Suitability Analysis® (MSA) provides insight into the appropriateness of these models in today’s climate.
- Climate Change Toolkit includes adjustments for changing hazards under future warming scenarios.
- GCAT™ Global Multi-Peril Risk Rating, which provides location-level assessment of risk today and in the future, incorporating hazard and damage into an average annual loss ratio metric. These allow risk to be aggregated to identify hotspots and manage accumulation risk, as well as underwrite and price risk in a changing climate.
- Guy Carpenter monitors the latest developments in science, markets and regulation to provide relevant insights into the industry.
Guy Carpenter has key relationships with reinsurance markets and public bodies, including public-private partnerships (PPP), to connect you to the right partners to help manage your risk.
Across Marsh, we can help insurers and their customers navigate the evolving landscape of climate risk. Follow along as we advance the conversation on insurability and climate through our partnership with the World Economic Forum over the year.