WTW partners with CU Boulder to enhance climate prediction for insurers
WTW partners with CU Boulder to enhance climate prediction for insurers | Insurance Business America
Catastrophe & Flood
WTW partners with CU Boulder to enhance climate prediction for insurers
It aims to improve forecasts for El Niño, La Niña, and weather impacts
Catastrophe & Flood
By
Kenneth Araullo
WTW has announced a scientific partnership with the University of Colorado Boulder to bring advances in seasonal climate prediction to the insurance and risk management sectors.
The collaboration aims to help WTW and its clients anticipate the impact of weather events on operations and portfolios over the upcoming months, enabling better preparation for forecasted climate risks.
The partnership also focuses on natural fluctuations in the Pacific Ocean, known as El Niño and La Niña, which are major drivers of annual variations in global climate. These patterns influence the likelihood of drought, wildfire, heatwaves, and hurricanes worldwide.
With current meteorological capabilities allowing for the prediction of El Niño and La Niña episodes months in advance, these forecasts can offer early warnings of severe weather and potential climate impacts on a global scale.
WTW noted that while the tropical Pacific’s climate conditions have historically resulted in trillions of dollars in damages and economic disruption, many businesses have not yet fully utilized the predictability associated with El Niño and La Niña.
The partnership with the University of Colorado Boulder aims to leverage the “climate prediction revolution” to improve forecasts for seasonal, annual, and decadal climate trends. The collaboration at CU Boulder will be led by Professor Pedro DiNezio, an expert in long-term climate forecasting and the effects of El Niño and climate extremes.
Scott St. George (pictured above), head of weather and climate research for the WTW Research Network, said that the influence of El Niño and La Niña extends far beyond the Pacific, affecting local weather patterns and increasing the risks of catastrophic events across the globe.
“We are excited to work together with Prof. DiNezio so our clients know well in advance how to prepare their business when El Niño and La Niña are on the horizon. These insights will be especially valuable for sectors that depend strongly on natural resources, such as energy producers, food and beverage, and transportation,” he said.
DiNezio, who is the associate professor in the Department of Atmospheric and Oceanic Sciences at CU Boulder, remarked on the opportunity to enhance the understanding of climate systems through predictions, noting that each forecast tests current knowledge.
“In addition, El Niño and La Niña happen every several years, therefore we do not fully know everything about these complex, sometimes chaotic phenomena, keeping our research fresh and exciting. This collaboration with WTW adds a new layer to this challenge as we learn how to produce predictions that are useful for the insurance sector and vulnerable communities around the world,” he said.
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