WTW launches Climate Quantified
WTW launches Climate Quantified | Insurance Business Canada
Environmental
WTW launches Climate Quantified
Tool combines high-resolution climate data with in-house risk engineering
Environmental
By
Terry Gangcuangco
WTW has launched what it described as a “ground-breaking” software-as-a-service online tool called Climate Quantified aimed at quantifying the financial impact of climate change.
Capabilities include quantifying asset property damage as well as business interruption and exposure value both at present and under future scenarios associated with events like drought and tropical cyclone.
Another key function is measuring the impact of transition risk on revenue and costs, plus the impact of managing or passing those costs through to clients. The tool is also designed with changing regulatory requirements in mind.
“Whether assessing the impact of drought, tropical cyclones, river floods, or commodity price changes, Climate Quantified is class-leading in its ability to measure the physical and transition risks impacting a company’s assets and products,” WTW climate practice head Peter Carter (pictured) said.
“By combining advanced, high-resolution climate data with our in-house risk engineering, WTW offers a sophisticated solution that quantifies risk in financial terms.”
Ben Fidlow, global core analytics head, added: “Companies face increased losses from physical risk and are assessing the need for investment and transformation for the move to a low-carbon economy.
Armed with a clear, transparent, and real-time view of the financial risks to their business provided by Climate Quantified, companies are well placed to anticipate and respond quickly to emerging risks, make better investments, reduce their reliance on vulnerable locations, strengthen supply chains, and protect their people.
“The outcome is to ensure capital is allocated at the right time to protect against climate-driven uncertainty and volatility.”
According to WTW, Climate Quantified offers a robust analysis of financial risk impact by analyzing the interactions and interdependencies between climate risk factors and their impact on business models, including physical risks, supply chain vulnerabilities, and regulatory changes.
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