Canopius partners with RMS to improve climate change risk analysis
Global specialty re/insurer Canopius will work closely with catastrophe risk modeller RMS to develop and enhance its climate change risk analysis using a probabilistic modelling approach.
The partnership will see Canopius adopt RMS Climate Change Models into its business processes with a focus on North Atlantic hurricane wind and storm surge.
The models offer comprehensive and flexible parameters to seamlessly adjust time horizons and Representative Concentration Pathways (RCPs) to assess the impacts and uncertainties associated with different climate change scenarios.
It will also help Canopius to respond to new and emerging regulatory reporting, such as the recent Bank of England Climate Biennial Exploratory Scenario (CBES) exercise, as well as further financial disclosures.
Paul Wilkinson, head of aggregation and risk strategy at Canopius, said: “Climate change presents one of the most significant risks to the (re)insurance industry. It is important to us to incorporate the latest science relating to climate change into our risk analytics in a manner that can be tailored to our needs and fully integrated across key business operations, such as portfolio management, near-term underwriting, and business planning. The RMS models enable adjusting time horizons for the near- and long-term, which, combined with the full flexibility and range of the IPCC’s Representative Concentration Pathway (RCP) scenarios, allows us to confidently assess North Atlantic hurricane climate change risks.”
Joss Matthewman (pictured), senior director, product management, RMS, said: “Rigorous and reliable climate change risk analytics are vital for all businesses right now. This is not just about contributing to increased regulation and financial disclosures, but also providing clients with strategic insights and outcomes for short-, medium- and long-term horizons. We are pleased to continue our work with Canopius, and we see more companies across the insurance and reinsurance industry defining best practices around climate change and investing in the future of our industry.”
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