Climate Risk is InsTech’s monthly newsletter dedicated to climate-related insurance news – you can sign up for free here.
What companies are working within climate risk?
Climate risk and ESG are important themes for us at InsTech. Insurers and brokers are increasingly asking us what is happening and what companies are active in these spaces. Over a third of the research and intelligence requests we receive from our members via our ATLAS platform are related to these areas.
InsTech recently launched ATLAS, our new insurance technology vendor and market intelligence database. It contains over 300 companies offering solutions related to climate modelling, natural hazards and property data. We are also increasingly tracking companies offering ESG-related services, including carbon accounting software, data on reputation and transition risks and sustainability reporting.
We provide this research to our insurance clients as part of an annual subscription and welcome any questions about our offering. We are also happy to hear from non-members working within insurance technology who would like to be included in our ATLAS database. To learn more about ATLAS and how you could be involved, you can visit our website here.
Maptycs provides a geospatial visualisation tool for property risk exposure management. In this episode, Matthew is joined by Jacqueline Legrand, Co-founder & CEO, to discuss why she founded the company, how to build intuitive software and why understanding risk aggregation is so important.
For podcast episode 238, Matthew was joined by Duncan Gemmel, Chief Strategy Officer, and Hayley Maynard, Head of Innovation at Chaucer Group, for a live recording. They discussed what Chaucer looks for in technology and data offerings, and the opportunities to provide insurance coverage for carbon offsets.
What odds would you have got a decade ago for a bet that, in 2023, marine insurance would be the most innovative of all the specialty classes? At InsTech, we like to showcase companies that are making the insurance world more innovative. Our latest article profiles some of our members’ most recent developments, from establishing new Lloyd’s of London consortia to ESG reporting and much more.
InsTech’s recent report features 36 companies offering solutions relating to natural hazards, including catastrophe modellers and hazard score providers. We also include perspectives from an insurer, broker and MGA on the current hazard data and catastrophe modelling market and what they are looking for from these providers. Our digital launch event featuring speakers from EigenRisk, Gamma Location Intelligence and JBA Risk Management is also now available to watch on demand.
In the news…
New data from specialist (re)insurer Beazley has found that energy transition risk is the number one environmental risk businesses are currently concerned about. The survey of 2,000 business leaders found that dealing with the immediate pressures of energy transition may be a distraction from addressing the overarching threat of climate change. The US was the only surveyed market currently less concerned about energy transition, with greenhouse gas emissions and the costs associated with reporting on them being the greatest concern. However, Beazley’s research also showed that climate change will dominate business’ concerns in 12 months’ time across all markets.
The platform uses Kroll’s property valuation algorithm to identify disparities in value, helping clients manage over and underinsurance. Platform users can also conduct portfolio analyses and visualisations by multiple variables, including geographic areas, occupancy types and valuation sizes.
Severe convective storms, which include straight-line winds, tornadoes, hail and severe thunderstorms, are among the most frequent and damaging natural hazard events in the US. The average annual loss from convective storms among the insured in the US is $17 billion; $11 billion of this being due to hail damage. To learn more, read CoreLogic’s first severe convective storms report.
The specialist insurer will now use JBA Risk Management’s flood data, including climate change scenarios, to underwrite personal and commercial properties in South Africa. The insurer has also made JBA’s flood maps available to its network of 60 brokers and delegated authority underwriting agents.
Annual damage caused by flooding in the UK could increase by more than a fifth over the next century due to climate change unless all international pledges to reduce carbon emissions are met, according to new research by Fathom. If COP26 and net zero promises are not met, the annual cost of flooding in the UK over the next century could grow by between 13% and 23%, depending on different levels of climate extreme projections.
WTW has introduced Climate Risk Solutions for Corporate Risk & Broking (CRB) North America, a strategy which will help clients better manage their climate-related risks. Climate Risk Solutions expands WTW’s predictive climate analytics capabilities, supporting clients with analysing and quantifying their climate-related exposures. It will also develop and implement solutions to guide clients through the mitigation and transfer of those risks.
The Altitude platform helps asset management companies understand climate, carbon and nature-related risks for their existing portfolio and during pre-acquisition. With the new functionality, companies can now obtain a consolidated view of ESG risks such as biodiversity and climate transition risks at both fund and portfolio level, helping them meet reporting requirements from regulators and investors.
CelsiusPro will assist the Swiss National Centre for Climate Services (NCCS) by analysing the impacts global climate change is having on the Swiss economy, as well as on its food and pharmaceutical supply chains. The conclusions of the analysis will result in the creation and publication of a web tool enabling the Swiss industrial sector to visualise climate change projections and adaptation recommendations.
Deloitte has developed several new solutions to combine with its existing ESG methodology on the Workiva platform, helping CFOs and controllers improve their organisations’ sustainability reporting efficiency and accuracy. The new tools will help clients to calculate Scope 3 emissions, support continuous control monitoring and simplify sustainability reporting.
Arturo provides property insights to help insurers understand a property’s pre-existing and current conditions for accurate claims assessments. The company’s recent whitepaper explores how artificial intelligence (AI) is increasing efficiency within the property insurance claims cycle and the future of P&C claims.