Willis has unveiled a new version of its Climate Diagnostic model, which aims to help risk managers better understand and respond to climate-driven volatility affecting property insurance markets.
The model, which is embedded in WTW’s Risk IQ platform, is a climate risk technology capable of predicting the current and future impact of floods, windstorms and other material climate threats on an organisation’s assets, business activities and supply chain.
Willis said that as extreme weather events become more severe and frequent, insurers are responding by either increasing the cost of property insurance or withdrawing from vulnerable regions entirely.
It added that as the costs of protection are predicted to keep rising, with some regions becoming increasingly unsustainable, the implications for individuals, businesses and economies will be “long-lasting”.
The firm has embedded Climate Diagnostic in its broking workflows and risk engineering surveys to address this growing protection gap, with the enhanced analytics tool enabling brokers and risk managers to identify and quantify the impact of acute climate hazards on global assets.
The tool also estimates the value of a portfolio exposed to levels of extreme weather risk and longer-term shifts in climate patterns.
Head of climate practice at Willis, Peter Carter, stated: "The volatility and frequency of climate hazards are increasing. Embedding Climate Diagnostic in broking workflows and engineering surveys sets a new industry standard, with clients benefiting from a built-in scan of the risk against ongoing climate change volatility.
"Early sighting of assets exposed to climate-related perils gives risk managers the chance to build resilience, improving future insurability before disaster strikes."
