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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. Read our infographic to understand what’s driving market interest in climate change, how the insurance industry is responding, and how RMS can help.

A Growing Threat

A Growing 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 and what will happen in the future. And with growing interest from stakeholders – from regulators, investors, and customers, all requiring answers, RMS can help.

A Need for Action

For more than 15 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 to quantify the risk. 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 climate change into their strategic outlook.

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Model Evolution

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Building Resilience

Quantifying the Impact

By understanding the impact and the cost of physical risk from climate change, stakeholders in insurance and financial markets, government, homeowners, and the risk community can take steps to understand, manage, and mitigate this growing risk.

Planning for the Future

RMS continually develops its models to better reflect climate change and works with the market and clients to create solutions to understand and meet current and future needs. As this development continues, we are assisting clients to quantify the impact of climate change through bespoke analyses.

Model Evolution

RMS models use data capturing most of the climate change since the start of the preindustrial era. As additional evidence emerges, this is incorporated to stay up to date with the latest research from the scientific community.


Financial regulators and rating agencies are now paying close attention to the potential impact climate change could have on increased catastrophe losses and asset prices. RMS has recently helped clients with “stress-test” submissions to their regulators.

Building Resilience

From local to central governments, corporations, and NGOs, RMS has a pedigree in helping partners understand the physical impact of climate change, to quantify the risks and costs and devise the best solutions to build resilience.

Our Progress

RMS has strong, long-standing partnerships with a wide range of organizations around the world, as we contribute our risk model experience and expertise to this ongoing conversation.

Climate Change - Europe Flood


European Flood and Climate Change

RMS examines how flooding and its impact in terms of physical damage and losses will change across Europe as a result of climate change. Learn More

2019 Annual Report


Changing Peril Risk

RMS worked with QBE to examine the impact of climate change on North Atlantic hurricanes and tropical cyclones in Australia through to 2100. Learn More

Climate Change


Meeting Stress-Test Challenge

With the U.K. PRA regulator introducing stress tests for climate change scenarios, RMS helps clients to meet the challenge. Learn More



Climate Change and Wildfire

As wildfires rage in California, RMS discusses how climate change has impacted the state to create conducive conditions. Learn More



Stress Test for Drought

A new drought stress-test tool devised by RMS is launched by the Natural Capital Alliance. Learn More

Storm Surge


Florida Storm Surge Risk

Broward County, Florida, commissions RMS to assess rising coastal storm surge risk. Learn More

rise of sea level


Protecting State Assets

RMS partners with the Delaware Department of Transport to calculate the risk of sea level rise to the state’s road network. Learn More

Natural Defenses


Natural Defenses

The value of natural defenses to mitigate sea level rise is highlighted in a joint RMS, Lloyd's, and Guy Carpenter report. Learn More

San Francisco


Sea Level Rise in San Francisco

RMS helps the City of San Francisco develop a Sea Level Rise Action Plan revealing the city had $77 billion of property at risk. Learn More

Rockefeller Foundation


Resilience Bonds

Working with the Rockefeller Foundation, RMS examined how resilience bonds could help to fund mitigating infrastructure projects. Learn More

Sea level Threat


Sea Level Rise Threat to U.S.

RMS partners with Risky Business to publish a report revealing the risk of sea level rise to eastern U.S. coastal regions. Learn More

Light House


Role of Modeling

RMS contributes to a Lloyd's report entitled Catastrophe Modeling and Climate ChangeLearn More

IPCC Report


IPCC Report on Extremes

Robert Muir-Wood, chief research officer for RMS, is a lead author for the 2011 IPCC Special Report on Extremes.

Resilient Coasts


Resilient Coasts

RMS becomes a partner of the Resilient Coasts Initiative. Learn More

Coastal Flooding


Examining Coastal Flooding

RMS works with Lloyd’s to publish Coastal Communities and Climate Change report looking at the impacts of coastal flooding by 2030 in high-risk areas.

Fourth IPCC Report


Fourth IPCC Report

Robert Muir-Wood, chief research officer for RMS, is a lead author on Insurance, Finance, and Climate Change for the fourth IPCC report.

North Atlantic Hurricane


Medium-Term Rates

RMS introduced medium-term rates for North Atlantic hurricane to capture recent trends in hurricane activity.


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



Six warmest years on record


3.3 Millimeters

Global annual average sea level rise since 1993



Global temperature increase since 1880


Up to 10%

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


News and Insights

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…

How to Deliver Sea Level Data

Global sea levels are rising. After two thousand years of stability, the transition to continuous coastal change will be jarring (although this is what our shoreline ancestors experienced more than 6,000 years ago). By the end of this century, millions of people will need to relocate. An estimated two trillion dollars of assets lies within the first meter above extreme high tide.   “Future sea levels” is one of seven “Grand Challenges” of the World…

Climate Change and NCA4: Part One

When I was a kid, my favorite breakfast cereal was Kellogg’s Sugar Frosted Flakes. As a teenager in the 1980s, I recall that the name changed to Frosted Flakes. In 1983, to appeal to a more health-conscious consumer, Kellogg simply dropped “sugar” from the name. And around the same time, Kellogg’s Sugar Smacks became Honey Smacks. There didn’t seem to be a dramatic reduction in sugar. Even today, sugar makes up over 55 percent…

Climate Change Katrina
Climate Change and NCA4 Part Two: Attribution and Future Climate Change

For the first part of Pete Dailey’s blog, Climate Change and NCA4: Part One, click here   What’s Climate Change Attribution? Lately, the climate science community has spent considerable time on a topic called attribution. In this context, attribution refers to the portion of rising temperatures attributable to human activity via the burning of fossil fuels and release of greenhouse gases (GHGs). Today’s climate models can reconstruct…

Calculating the Cost of “Loss and Damage”

The idea that rich, industrialized countries should be liable for paying compensation to poorer, developing ones damaged by climate change is one that has been disputed endlessly at recent international climate conferences. The fear among rich countries is that they would be signing a future blank check. And the legal headaches in working out the amount of compensation don’t bear thinking about when there are likely to be arguments about whether vulnerable…

climate change
A Climate Model Challenge

Insurance-linked securities (ILS) investors want to know more about how climate change impacts investment decisions, according to Paul Wilson, head of non-life analytics at Securis Investment Partners, an ILS asset manager

Today’s Stress Test for Tomorrow’s Climate

Why the PRA’s stress test has pushed climate change to the top of (re)insurance company agendas

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