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.
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.
Integrate Climate Change Risk Throughout Existing Workflows
Moody’s RMS™ 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 Moody’s RMS to respond to the growing risk from climate change.
Stronger Risk Mitigation
Refined Growth Planning
Updated Reinsurance and Capital Management
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 Moody’s RMS
For more than 20 years, Moody’s RMS has 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.
Moody’s RMS is 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.
Climate Change Insights Throughout the Journey
Insurers and reinsurers face mounting pressure to demonstrate to rating agencies and market analysts that their business model is resilient to climate change. Moody’s RMS Climate Change Models and data can be used to conduct scenario analysis and assess expected performance over time.
The shift from a near-term, annual assessment of climate risks to a longer-term climate change perspective can be transformational. Moody’s RMS has designed our modeling, analytics, and solutions to be easily leveraged throughout your journey.
Consulting and Advisory Services
The Moody’s RMS 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.
Moody’s on Climate - Navigate Climate Risk with Confidence: Trusted Data, Financial Insight, Better Decisions for Leaders Across Sectors
Climate risk is complex. Its impacts not only vary but also influence other areas of risk. A comprehensive understanding of climate risk includes insights on credit ratings and debt markets, global macroeconomic outlooks, and competition in traditional and emerging markets. Awareness of these interconnected risks can help you sharpen your risk management strategies and uncover new opportunities.
Interested in Deeper Climate Change Risk Modeling?