Finance and Insurance

Extreme weather events are directly relevant to the banking and insurance sector given that past, present and future climate change will continue to threaten the stability of the financial System. A good characterisation of historical and future events provides a useful input into the assessment of the weather risks associated with specific assets. The Task Force on Climate-Related Financial Disclosures (TCFD) identifies two climate-related risks: 1) the physical risks associated with more frequent severe weather events and lasting environmental changes, and 2) the transition risks posed by the policy and technological changes necessary to achieve a greener economy.

The increase in frequency and severity of damaging floods, droughts, fires, and hurricanes, as well as encroaching sea level rise, can lead to destabilizing losses for insurance companies, banks, and other financial intermediaries with direct and indirect exposure to different affected industries and assets. Beyond these physical risks, the financial system could be destabilized by potentially rapid losses to carbon-intensive assets caused by the urgently needed transition to a greener economy.

We support the banking and insurance sector through the provision of granular level baseline and climate projections data for risk analytics to inform investment strategies and climate risk disclosures.

Our core services for the Finance and Insurance sector include:

• High-resolution historical weather and climate data development
• Downscaling of climate change scenarios data
• Climate Risk Analytics and Scoring
• Hydrometeorological forecasting and model development