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A Need for Action

For more than 20 years, RMS has worked with partners and stakeholders to understand how climate change affects perils and regions around the globe and to progress toward solutions that quantify the physical risk of climate change. Building a more resilient world is the essence of the RMS mission. By demystifying the risks of climate change, we are committed to helping organizations of every type factor these consideration into their strategic outlook with Climate Change Models, data, and analytics.

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Insurance Losses

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Regulatory Reporting

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Supply Chain

Coverage Gaps

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Asset Devaluation

Reduce Insurance Losses

Improve risk selection with climate change risk models that reflect the latest scientific consensus on the impact of climate change on perils today. Build an understanding of climate change with the new RMS Climate Change Models.

Solve Compliance Challenges

Demonstrate your understanding of climate change impacts for your investors and rating agencies with climate risk modeling insights. Simplify reporting for new and emerging risk profiles, stress tests, and climate-related regulation.

Strengthen Supply Chain Resiliency

Understand vulnerability to your supply chain and mitigate risk of future disruption as increasing severity of regional extreme weather events can now disrupt entire global logistics networks.

Close the Protection Gap

Grow your business by understanding the complex relationship between greenhouse gas emissions and extreme weather events. Leverage climate change risk modeling for new growth opportunities.

Invest Smarter

Make better real estate decisions by using climate risk modeling to understand the impact of climate change on long-term asset depreciation and identify strategies to enable reductions in risk.

Climate Change Client Initiatives

RMS uses historical climate data, including precipitation, sea levels, weather patterns, impact on coastlines, and storm intensities and frequency to inform our leading-edge stochastic modeling. Find out how others have partnered with RMS to respond to the growing risk of climate change.

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Optimize Portfolio Risk with QBE
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Optimize Portfolio Risk with QBE

QBE leverages climate risk analytics to evaluate climate-related risks and opportunities to their business.

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Smart City Planning with Broward County
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Smart City Planning with Broward County

Mitigate future flood risk by analyzing the impact of rising global temperatures, storm surge, and the average annual loss.

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Strategic Infrastructure Investments with the DelDOT
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Strategic Infrastructure Investments with the DelDOT

Calculate the risk of sea level rise to the Delaware Department of Transportation's public infrastructure network.

Our Progress

For over 20 years, RMS has developed strong, long-standing partnerships with a wide range of organizations around the world. We are committed to contributing our risk modeling expertise to help the market better understand the physical risk caused by climate change.  Learn about our extensive experience and contributions to this ongoing conversation since 2001.

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Tap on dots for more information.

  • 2021

  • Contact Us

  • RMS Launches New Climate Change Models

  • Bank of England PRA Stress Test

  • 2020

  • European Flood and Climate Change

  • 2019

  • NGFS Climate Scenarios Database

  • PRA’s General Insurance Stress Test

  • 2018

  • Stress Test for Drought

  • PRA Working Group on Climate Change

  • 2017

  • TCFD Final Report

  • Climate Change Economic Damage Report

  • 2016

  • Coastal Wetlands and Flood Damage Reduction Report

  • 2015

  • RE.bound Program Develops New Resilience Bond

  • 2014

  • IPCC Fifth Assessment Report

  • Risky Business Report

  • Lloyd’s Publishes Catastrophe Modeling and Climate Change

  • 2008

  • RMS Joins the Resilient Coasts Initiative

  • Lloyd’s Report: Coastal Communities and Climate Change

  • 2007

  • IPCC Fourth Assessment Report

  • 2006

  • RMS Establishes Climate Change Team

  • RMS Introduces Medium-Term Rates

  • 2001

  • IPCC Third Assessment Report

2021

Contact Us

Take the first step in your journey by meeting with an RMS climate change expert. Our dedicated team of experts can help you turn climate change unknowns into business solutions.

Contact us
Apr 1, 2021

Begin your Climate Change Journey today

2021

Climate Change Models

RMS Initiative

RMS Climate Change Models extend our industry-leading, comprehensive catastrophe models to capture the near- and long-term climate change risk outlook.

Learn More
2021

Bank of England PRA Stress Test

Industry Milestone - Climate Change

The 2021 Biennial Exploratory Scenario (BES) tests the resilience of the current business models of the largest banks, insurers, and the financial system to climate-related risks. It evaluates the scale of adjustment required in the near and long term for the system to remain resilient. RMS collaborates with clients to respond to the upcoming regulations.

Webinar
2020

European Flood and Climate Change

RMS Initiative

RMS explores the latest scientific understanding of the effects of climate change on flood risk in Europe, and possible implications on losses caused across the continent. Flooding is one of the main climate hazards affecting Europe, and research suggests that climate change could cause extreme flood events to become more frequent over the next decades.

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2019

NGFS Climate Scenarios Database

Industry Milestone - Climate Change

The Network for Greening the Financial System (NGFS) publishes datasets that include transition pathways, data on macroeconomic impacts from physical risks, and physical impact data collected by the Inter-Sectoral Impact Model Intercomparison Project. By aligning these datasets to global warming levels, modelers can conduct a sophisticated climate change scenario analysis in a financial context.

Learn More
2019

PRA’s General Insurance Stress Test

Industry Milestone - Climate Change

Bank of England releases the first General Insurance Stress Test, which examines how changes in U.S. hurricane and U.K. weather risk under different climate change scenarios may affect losses. RMS partners with multiple clients in responding to the “Assumptions to Assess the Impact on an Insurer’s Liabilities” portion of the climate change section.

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2018

Stress Test for Drought

RMS Initiative

A new drought stress-test tool – created by RMS and validated by several banks from Brazil, China, Mexico and the United States – is launched by the Natural Capital Alliance. The tool uncovers multiple untreated risks in financial portfolios, including that extreme droughts could increase loan defaults tenfold for institutions with specific portfolios that are most exposed to drought risks.

Read the Report
2018

PRA Working Group on Climate Change

Industry Milestone - Climate Change

The Bank of England completes its review of the impact of climate change on the U.K. banking sector. The report highlights that a transition in thinking is taking place across the sector, from viewing climate change as a potential reputational risk to a core financial and strategic risk.

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2017

TCFD Final Report

Industry Milestone - Climate Change

The Task Force on Climate-Related Financial Disclosures (TCFD) report establishes recommendations for disclosing clear, comparable, and consistent information about the risks and opportunities presented by climate change. Its goal is to help strengthen the stability of the financial system, contribute to a greater understanding of climate risks, and facilitate financing the transition to a more stable and sustainable economy.

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2017

Climate Change Economic Damage Report

RMS Collaboration

RMS coauthors a report with industry leaders to estimate the economic damage from climate change in the United States. Estimates of climate change damage are central to the design of climate policies. The authors developed a flexible architecture for computing damages that integrates climate science, econometric analyses, and process models.

Read the Report
2016

Coastal Wetlands and Flood Damage Reduction Report

RMS Collaboration

RMS, Lloyd’s, and Guy Carpenter publish the Coastal Wetlands and Flood Damage Reduction report with the University of California at Santa Cruz, The Nature Conservancy, and the Wildlife Conservation Society. The research leverages RMS modeling expertise and looks back to Hurricane Sandy, which had grave impacts across the Eastern Seaboard.

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2015

RE.bound Program Develops New Resilience Bond

RMS Collaboration

RMS partners with RE.bound and the Rockefeller Foundation to examine how resilience bonds could help to fund mitigating infrastructure projects, with the goal of helping communities around the world better protect themselves against the physical and financial risks of disaster.

Read the Report
2014

IPCC Fifth Assessment Report

Industry Milestone - Climate Change

The IPCC Fifth Assessment Report provides a comprehensive assessment of the physical aspects of climate change. In this report, the IPCC adopts the Representative Concentration Pathway (RCP) as the basis for projecting greenhouse gas concentration scenarios for climate change science. RCPs are used in the RMS Climate Change Models.

Read the Report
2014

Risky Business Report

RMS Collaboration

RMS partners with Michael Bloomberg, former U.S. Secretary of the Treasury Hank Paulson, and business leader and philanthropist Tom Steyer to publish the economic risks to the U.S. associated with climate change in the near term, as well as up to the end of the century. The Risky Business Report analyzes not only those outcomes most likely to occur, but also lower-probability, high-cost climate futures. Unlike most current studies, it also provides geographic granularity for the impacts and, in some cases, provides county-level results.

Read the Report
2014

Lloyd’s Publishes Catastrophe Modeling and Climate Change

RMS Collaboration

RMS contributes to Lloyd’s Catastrophe Modeling and Climate Change report, which reviews the latest findings in climate change science and the effect on extreme weather events, outlining the role of catastrophe modeling in understanding climate change. It also examines whether and how catastrophe models account for climate change through a series of case studies. 

Read the Report
2008

RMS Joins the Resilient Coasts Initiative

RMS Collaboration

RMS becomes a partner in the Resilient Coasts Initiative as a contributing technical expert on climate-driven catastrophe risk and adaptation modeling. The Resilient Coasts Initiative is a collaboration between private and public sector groups to address the need for climate adaptation in the coastal regions of the United States.

Learn More
2008

Lloyd’s Report: Coastal Communities and Climate Change

RMS Collaboration

RMS partners with Lloyd’s to publish Coastal Communities and Climate Change, which looks at the impacts of coastal flooding by 2030 in high-risk areas. This report incorporates a variety of adaptation measures into modeling, as well as recognizing how climate change could impact the affordability and availability of property insurance without significant changes within the industry.

Read the Report
2007

IPCC Fourth Assessment Report

RMS Collaboration

Robert Muir-Wood, RMS chief research officer, is a lead author for the “Insurance,” “Finance,” and “Climate Change” sections in the IPCC Fourth Assessment Report. The report is one of the most comprehensive scientific assessments of the impact of climate change, the vulnerability of natural and human environments, and the potential for response through adaptation.

Read the Report
2006

RMS Establishes Climate Change Team

RMS Initiative

RMS creates a dedicated team focused on analyzing the impact of climate change on our modeling and our client base, engaging with the media and regulators on issues related to climate change, and generating new research services and products for businesses and policymakers. This climate change team contributes to the 2007 IPCC Fourth Assessment Report.

Learn About Our Services
2006

RMS Introduces Medium-Term Rates

RMS Initiative

RMS introduces medium-term rates for North Atlantic hurricane to capture recent trends in hurricane activity. This is one of the earliest recognitions of the importance of taking a more strategic view of risk optimization. The new Climate Change Models extend insights beyond medium-term risks up to 2100.

Learn More About Climate Change Models
2001

IPCC Third Assessment Report

Industry Milestone - Climate Change

The IPCC Third Assessment Report provides new projections of future concentrations of greenhouse gases in the atmosphere, global and regional patterns of change, as well as rates of change in temperature, precipitation, sea level, and extreme climate events. It also introduces SRES scenarios for rises in global average temperature and sea level.

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A Growing Threat

Responding to the Threat

Responsible organizations want to know their exposure to climate change risk. There is an urgent need to assess and quantify the extent of the rising physical risk caused by climate change – how much it has already changed, what will happen in the future, and how such risks are being priced. With stakeholders such as regulators, investors, and customers, all requiring answers, RMS can help. Our climate change risk analytics practice helps clients translate climate change science into a competitive advantage with regulatory and business consulting services.

Assess Your Climate Change Risk
Climate Change Models

Managing Risk as Our Climate Changes

The effects of climate change aren’t just reshaping our physical world. They are also disrupting the market in profound ways. Our new Climate Change Models extend our industry-leading, comprehensive catastrophe models to empower you to address the near- and long-term challenges posed by climate change.

Climate Change Models

12.85%

Decline of the extent of Arctic Sea ice per decade since 1979

(NSDIC/NASA)

2014–2019

Six warmest years on record

(NOAA/NASA)

3.3 Millimeters

Global annual average sea level rise since 1993

(NASA)

1.9°F

Global temperature increase since 1880

(NASA/GISS)

Up to 10%

Increase in tropical cyclone intensities globally for a 2°C global warming

(NOAA)

News and Insights

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Press Release
RMS Global Catastrophe Model Leader Launches First Climate Change Models, Enabling New Risk Insights

Newark, Calif. – May 5, 2021 – RMS, the world’s leading catastrophe risk modeling and solutions company, revealed that according to its new Climate Change Models, and based on today’s exposures, insured average annual losses (AAL) from North Atlantic Hurricane wind could increase by as much as 24 percent by 2050*, and European Flood risk AAL could increase by up to 59 percent by 2050**, based on no mitigating factors taken. The new RMS Climate Change Models…

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Hurricane
Events
Crossing the Climate Change Chasm with RMS

Watch Joss Matthewman’s presentation at this years RAA event, Cat Risk Management 2021. Of the $1.42 trillion in losses from larger events due to climate perils over the last 30 years, 41% have occurred in the last five. Despite recognizing climate change risk, (re)insurers still struggle with how to properly adapt their business models to this new reality. See how RMS has incorporated the latest scientific climate change research into its catastrophe…

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Urban flooding
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Modeling the Economic Impact of Climate Change

For everyone working in risk management, there is an implicit understanding about the wider mission underlining our work: to help create a more resilient world. But we are trying to build resilience in an era when assessing the physical impacts of climate change has become more challenging. With increasing board-level attention, stakeholder scrutiny, and regulatory pressure, businesses everywhere are struggling to understand the impacts of climate change and…

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Florida hurricane
Blog
Quantifying Climate Change and Its Uncertainty

The findings of the Fifth Assessment Report (AR5) from the Intergovernmental Panel on Climate Change (IPCC), finalized in 2014, were clear: Human behavior is affecting climate change. The occurrence of extreme climate-related catastrophic events, such as the recent record-breaking wildfire seasons in California (2020) and Australia (2019–20), are reminders of the present-day threat to society from climate volatility. So how can we quantify the many projected…

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Flooded street
Blog
Bank of England CBES: Five Thoughts on Tackling Climate Change Physical Risk Reporting

The Bank of England’s Climate Biennial Exploratory Scenario (CBES) exercise launches in June, with submissions required by the end of September 2021. Less than four months remain until the official launch, so the Bank of England (BoE) is engaging early with invited insurers and banks to ensure they understand the direction and scope of the assessment. Announced in December 2019, the BoE’s stated objective for the CBES is “to test the resilience of the current…

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Sea ice
Blog
What’s the “Doubling Time” for Climate Change?

For almost all of us, COVID-19 represented our first experience of a rapidly growing exponential harm. Back in late January 2020, the scariest harbinger of the advancing pandemic was that the numbers of infected and dying were doubling, unremittingly, every three or four days. Projecting out a month or two, without any intervention, fatalities were set to rise into the hundreds of thousands. Everyone has become familiar with the regularly published “R”…

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davos
Blog
Risk Modeling for the Future

The World Economic Forum (WEF) has celebrated its 50th year at its annual meeting in Davos. Increasingly the business/political nexus has become that articulated in WEF founder Klaus Schwab’s Davos Manifesto, that corporations “… must assume the role of a trustee of the material universe for future generations.” In 2020, “action on climate change” has now become the number one risk in terms of impact in the World Economic Forum’s Global Risk…

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Interested in Deeper Climate Change Risk Modeling?

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