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Insurance Solutions

Formerly Moody’s RMS

A new horizon in portfolio risk management

The annual perspective on current risk for portfolio management is insufficient in the era of climate change. Market leaders are considering how climate change-related physical risks will impact the quality of their portfolios 10-20 years in the future. Incorporating this near- to medium-term climate risk will demonstrate leadership with a differentiated book of business and extended outlook on risk to provide comprehensive underwriting insight, risk mitigation decisioning, portfolio growth planning, and reinsurance and capital management.

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Integrate climate change risk throughout existing workflows

Moody’s uses a variety of climate data – from measurements of precipitation and sea level to storm intensity, frequency, and coastline impacts – to inform our leading-edge stochastic modeling. Learn why many (re)insurers have partnered with us to respond to the growing risk from climate change.

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Better underwriting

Stronger risk mitigation

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Refined growth planning

Updated reinsurance and capital management

Extend your perspective on underwriting risks to ensure robust portfolios. With sustainable portfolio management, you can understand longer-term exposure accumulations coordinated with growth strategies that consider climate change.

Understand costs and benefits in adaptation, resilience strategy, and investment options. Gain a consistent view of both current and longer-term climate change-related risk that’s easily accessible through your existing workflows.  

Incorporate physical climate change risk when evaluating each new market entry, pricing adequacy, and product viability.  Have confidence in your growth strategy when you understand how risks to your retained policy portfolio in the 10-plus year time horizon may evolve due to climate change across regions and within geographies.

Evaluate climate change risk to realize longer-term insight on risk selection and divestment planning. Ensure balanced portfolios that support your capital plans well into the future.

Why insurance solutions from Moody's

For more than 20 years, we have worked with partners and stakeholders to model complex physical risks and their financial impacts on P&C insurance portfolios and assets. We now extend that expertise to climate change risk. Our globally recognized, forward-looking climate change models use best-available climate science within a proven, consistent risk assessment framework.

We are committed to making climate change risk analytics accessible and business relevant. We accomplish that by extending the “common currency” of risk to climate change impacts, taking as foundational the rigor of catastrophe modeling and bolstering it with future-looking climate change scenarios. Our climate change analytics form a compatible, consistent complement to your current portfolio risk management tool kit.

Cutting edge technology – Intelligent Risk Platform

Moody’s RMS Climate Change Models are built on the Intelligent Risk Platform – the foundation of our models and unified risk analytics. The platform delivers insights enabling the seamless integration of a consistent view of current and future climate change risks into your existing workflows

Foundational, industry-proven modeling framework

Understanding the potential financial and strategic impact of climate change on your business requires incorporation of best available climate science with robust modeling of the compounding and correlated risks from geo-specific specific perils and asset characteristics.

Compatible long-term view of potential climate change impact scenarios

The complexity of evaluating potential impacts of climate change cannot be managed in isolation. A common framework to assess today’s risk and the future scenarios of risks from climate change ensures consistency in decision-making. Rely on rigorous assessment of potential scenarios for climate change impacts that leverage best-available climate science, understanding of variables that drive extreme events, regional risk differentiation, probabilistic modeling of loss to account for uncertainty and variability – all of which ensures a consistent view with the reference view of current risk. 

How is the P&C industry adapting to climate change risk?

Insurers and reinsurers face mounting pressure to demonstrate to rating agencies and market analysts that their business model is resilient to climate change.

In this interview with The Insurer TV, Joss Matthewman, Senior Director for Climate Change Product and Strategy, discusses how a shift from a near-term, annual assessment of climate risks to a longer-term climate change perspective can be transformational for business success. 

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Consulting and advisory services

The services team is available to help clients analyze the growing losses and uncertainty associated with climate change and the materiality of specific climate change risks in your portfolio. In addition, they can present you with opportunities for innovation, such as helping you identify emerging needs for adaptation and improve asset-level resilience.

We can support your  needs as you navigate increasing pressure for investor and stakeholder communications, regulatory reporting, strategic planning, and stress testing for climate change risks.

Climate Change

Interested in deeper climate change risk modeling?

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