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WTW develops new climate modelling tool

WTW develops new climate modelling tool | Insurance Business

WTW develops new climate modelling tool

Willis Towers Watson has announced the launch of a new global climate modelling tool.

Climate Diagnostic uses advanced data and analytics to demonstrate changes in acute hazards like extreme wind and floods, as well as chronic stress factors like sea-level rise and heat stress, under multiple combinations of climate scenarios and time horizons. The modelling shows how those changes can impact specific properties, enabling clients to determine the best way to mitigate risk across their property portfolios.

Climate Diagnostic is one of a range of products and services to manage climate risk through Willis Towers Watson’s Climate Quantified solutions. It is fully integrated into Willis Towers Watson’s core analytics platform of risk assessment and quantification tools. Climate Diagnostic can help organisations respond to climate-risk disclosure requirements such as the Task Force on Climate-related Financial Disclosure (TFCD) and help them develop a strategic response to the climate transition, Willis Towers Watson said.

Other key features include:

  • A climate change atlas of climatic and exposure maps with options to view high-risk areas, locate individual assets and identify the relative impact of each hazard.
  • Flexible and adaptable time projections and climate scenarios that allow users to see risk over time and alternate climate conditions up to 2100.
  • Summaries at an aggregate level and broken down by region, time horizon, and acute and chronic climate risks.
  • Data to project exposure for Representative Concentration Pathways (RCP) 2.6-8.5, industry-recognised scientific climate projection scenarios based on greenhouse gas concentration.

Read more: Climate change impacts energy industry risk landscape – WTW

“We are delighted to introduce this innovative modelling tool to clients,” said John Merkovsky, global head of risk and analytics for Willis Towers Watson. “This tool provides visual representations of key locations influenced by climate change in the mid- and long term. This enables our clients to extend existing risk understanding, revolutionising the way that they can review their future risk. We believe that the more organisations learn about climate risk, the more they will see that the thinking, analytic techniques and tools that are required for this new future are familiar to risk managers today.”