RMS launches new climate change models with predictive and analytical capabilities
Catastrophe risk solutions company RMS is to launch of a new suite of climate change models to help customers assess the near and long term impacts of climate change on physical assets and their businesses, in order to make the best possible risk and financial decisions.
RMS CEO Karen White said: “Today there are no robust or consistent frameworks that can quantify the physical risks posed by catastrophes in a changing climate at the depth required. The innovative suite of RMS Climate Change Models changes that, giving the market a powerful new set of tools. With increasing Board-level attention, stakeholder scrutiny, and regulatory pressure, businesses need to operationalise climate change analytics to make better decisions and enable better transparency. It is clear that the financial impacts of climate change are not solely a “future problem”. The increasing incidence of wildfires, floods and hurricanes mean that climate change insights need to be incorporated into financial decisions that are being made today, in parallel with long term strategic planning and meeting increasing regulatory, environmental, social and governance (ESG) and TCFD reporting requirements, and investor and customer demands. This necessitates a climate change framework and models fully consistent with today’s catastrophe risk analytics and one which addresses the challenges posed by physical climate change risk and its broad impact across all relevant time scales – from today through to the end of the century.”
Most RMS models, including all major peril models, already incorporate the impact of climate change up until now – but RMS believes more is required to meet the evolving and significant market needs. The new RMS Climate Change Models take its existing capabilities further with forward-looking predictive insights and analysis.
The company said the new Climate Change Models empower RMS’s economic modelling framework with “the best climate science consensus”, including from the Intergovernmental Panel on Climate Change (IPCC).
The new models will be generally available in June for major peril models North Atlantic Hurricane, Europe Inland Flood and Europe Windstorm. Further models and geographies will follow this initial model suite launch. The RMS climate change solutions also include climate change specialist advisory and consulting expertise and regulatory, ESG and TCFD support.
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