Jupiter Intelligence, founded in 2017, provides data and analytics on physical risk caused by climate change. This interview covers how insurers can use the company’s offering, the challenge in predicting the impacts of climate change and why companies are exploring their future climate risk.
What does Jupiter Intelligence provide?
Jupiter Intelligence offers physical climate risk analytics, providing hazard and loss estimates based on projected changes in climate. Our data and analytical services are used by organisations across both the private and public sectors, including large insurers and reinsurers. Jupiter offers analytics for a range of perils including flood, wind, wildfire, cold and heat. Customers can assess the impact on portfolios using our ClimateScore Global tool and individual assets using ClimateScore Planning.
How does Jupiter create its climate risk model?
Jupiter quantifies physical climate risk across the world. We use climate models combined with machine learning, land use and elevation data and models for hydrology, wildfire and severe weather amongst others. In addition to baseline periods, Jupiter provides future climate scenarios that account for different possible socioeconomic conditions and greenhouse gas emissions levels.
What do insurers use ClimateScore Global for?
Organisations in the insurance industry use ClimateScore Global to provide an independent view of their current and future climate risk for their properties, equipment, infrastructure and other assets. We can assist them with portfolio management, underwriting and pricing, risk engineering and developing new products and services for their clients. In 2021 Jupiter took part in the Lloyd’s Lab. We worked closely with four syndicates and insurers to analyse a selection of datasets in ClimateScore Global. This provided insights and perspectives around use cases such as UK flooding, North American hurricane and sea level rise.
What is the biggest challenge in predicting the potential future impacts of climate change?
All future climate analytics have multiple sources of uncertainty. Whilst we use the best climate models and data available, there will be varying levels of uncertainty depending on the peril region. It is important to understand the level of uncertainty and communicate it to those making decisions with the data. At Jupiter, we offer customers full transparency into our data, quantifying uncertainty for all metrics.
InsTech released a report on climate change risk regulation and measurement in February 2022. What do you find is driving companies to explore their future climate risk?
There are a number of internal and external factors that drive companies to assess future climate risks. Firstly, regulatory pressures from bodies such as the UK’s Prudential Regulation Authority (PRA) or frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD) require many firms to stress test their assets and liabilities to 2050 and provide climate disclosure reports. Other pressures come from external stakeholders, such as investors or shareholders, who want to see sustainable business practices being implemented.
Why has Jupiter joined InsTech as a corporate member?
By joining InsTech’s network, we are able to engage with innovative insurers and understand their needs. Jupiter is also aligned with InsTech’s vision to educate the insurance and technology community.
What companies is Jupiter looking to connect with?
We are looking to work with insurance companies that must meet disclosure requirements and support them more generally in quantifying the potential impacts of physical climate risk on their portfolios and business strategies. Jupiter also wants to explore potential partnership opportunities with data and distribution partners. For more information, please contact Jessyla Reedha, Head of Sales EMEA, at firstname.lastname@example.org.