Howden unveils platform for climate risk management
Howden unveils platform for climate risk management | Insurance Business Asia
Insurance News
Howden unveils platform for climate risk management
New tool said to do something never done before
Insurance News
By
Terry Gangcuangco
No matter where you are in the world, you don’t need to look far to understand the impacts of climate change. From the wildfires in Alberta and California, to flooding in Louisiana and Quebec, to cyclones in New Zealand and Australia, to the recent flooding in central Europe – estimated to cost anywhere from two to three billion euros, according to Gallagher Re – the results are often devastating.
It’s no surprise then that one global insurance intermediary is taking action and looking to help businesses get ahead of climate-related risks. Howden has announced the introduction of the Howden Resilience Laboratory platform, powered by Microsoft’s cloud services.
The Resilience Laboratory enables users to model various climate scenarios and evaluate the financial impacts of those risks. By analysing vast amounts of complex data – including environmental, societal, and financial metrics – the platform delivers insights for asset owners, investors, and other stakeholders.
Features of the new offering include advanced climate risk modelling, custom strategic scenario planning, optimised risk transfer solutions, and quantified financial impact of resilience investments. According to the brokerage giant, it is built on extensive industry research and collaborates with data modelling experts and Microsoft’s Planetary Computer.
Howden, which through its reinsurance arm recently highlighted the positive effects of flood resilience amid natural catastrophes, suggests the platform is the first to incorporate financial metrics like cash flow impacts. It was also designed using the Physical Climate Risk Assessment Methodology curated by the Institutional Investors Group on Climate Change.
“Asset owners, investors, and wider stakeholders face evolving and complex pressures from risks related to climate change,” noted Howden chief information officer Lyn Grobler (pictured). “This collaboration with Microsoft allows us to create a world-class innovation hub powered by data, AI (artificial intelligence), and computation to model climate scenarios and assess financial impacts, which will enable strategic and confident investment decisions that protect assets and businesses.
“Together with Microsoft, we will continue to integrate insights and collaborate with other data partners and researchers to help scale and build the tools and capabilities to de-risk financing decisions and accelerate the transition to a more resilient world.”
The new platform is showcased at this week’s Climate Week NYC 2024.
What do you think about this story? Share your thoughts in the comments below.
Keep up with the latest news and events
Join our mailing list, it’s free!
