Climate Change

Explore the sensitivity of catastrophe risk to a changing climate.

Verisk offers innovative science-based solutions for assessing and mitigating the risk of climate change across different sectors of the insurance industry and the interconnected global economy.

Our climate change solutions help you understand rising losses from physical, transitional, and liability aspects of climate risk and thoughtfully prepare operational and strategic resilience initiatives that meet the needs of all stakeholders. Verisk provides comprehensive data sets and tools for managing climate change risk and addressing the insurance industry’s biggest concerns related to the changing climate.

With Verisk’s climate change solutions, you can:

Stress-test and rebalance your portfolios
Gain peril-specific insights and mitigate risk
Improve climate risk insights and streamline reporting

Read the solutions brief on Verisk’s Climate Change Practice

Quantify the Current and Future Impacts of Climate Change

We understand the crucial role that data and technology play in climate risk mitigation and your ability to accurately assess and price the risk. Touchstone^®, Verisk’s extreme event risk modeling platform, can help you quantify the threats you’re facing from the current and near-future climate. Find out which perils are your main loss drivers, where your risk is increasing, and what it will look like in 10, 20, or 30 years.

Climate-conditioned catalogs provide a probabilistic view of future risk and how average annual losses (AALs) and 100-year losses will change in the future.

Climate change event sets (scenarios) use deterministic modeling to pinpoint the sensitivity of your portfolio to climate change trends.

Industry exposure data sets can help produce a more accurate risk analysis.

Custom event frequency in Touchstone enables you to resample a stochastic catalog to create climate change–conditioned catalogs, compute modified exceedance probability (EP) curves, quantify the impact on cat treaties, and assess the effects of demand surge; this feature can be used for stress testing, model validation, and creating your own view of risk.

Model documentation includes a climate change chapter highlighting the consideration of historical trends during model development, the underlying model data, and validation of the model from a climate change perspective.

Climate change risk indices, available through Verisk Maplecroft™, evaluate the vulnerability of human populations to extreme climate events and potential changes in climate over the next 30 years

Verisk Is Helping Organizations Respond to the 2021 Climate Biennial Exploratory Scenarios

Verisk's Climate Change Practice is working to help firms satisfy the Bank of England’s 2021 climate biennial exploratory scenarios (CBES) by exploring the financial risks posed by climate change. Verisk has relevant experience providing solutions for the General Insurance Stress Test 2019. This exercise tests the resilience of banks’ and insurers' current business models to climate-related hazards to help inform decisions about adjustments that may be needed in the coming decades. For this exercise, Verisk prioritized three critical regions and perils (Great Britain inland flood, Japan typhoon, and U.S. hurricane). Our team of experts is prepared to undertake similar studies on a consulting basis for other regions and perils.

A document outlining the methodology, results, and data for this study is available to clients who license Verisk models.

Contact AIR’s Climate Change Practice for further details on the 2021 CBES

Verisk Is Helping Clients Respond to the BMA Climate Change Exposure Assessment 2021

In the second half of 2021, the Bermuda Monetary Authority (BMA) issued the Climate Change Exposure Assessment 2021 (CCEA). The CCEA asks firms to perform a set of climate risk scenarios on various region/peril combinations and report the modeled losses. The scenarios cover four perils: hurricane, storm surge, inland flood, and wildfire. Verisk released a document providing guidance for clients on how to use Verisk’s models to report for United States (U.S.) hurricane, inland flood, and wildfire. In addition to this document, Verisk has prepared the Verisk Support Pack for CCEA 2021, which contains year-event mapping tables and several event loss modification factor files.

Climate Change Knowledge Center

Interactive icon Explore the interactive graphic below to discover how the frequency and intensity of atmospheric perils might change as the climate warms. (Length of bars indicates the degree of uncertainty.) Download Verisk’s white paper on the science behind the chart.

Tropical cyclones are expected to become stronger, with more intense events becoming more frequent even though it is believed that the overall number of storms will decrease.

Extratropical cyclones are expected to be influenced by climate change in a way that is similar to the effect on tropical cyclones: there will be fewer extratropical cyclones but proportionately there will be more strong ones.

Severe thunderstorms in the U.S., Europe, and Australia are expected to increase in frequency but with regional variations, primarily because the available convective potential energy—the primary fuel for this type of storm—will increase.

Wildfire is expected to increase in frequency in many parts of the world as longer and more pronounced wet and dry periods lead to larger fuel supplies for such fires.

Inland flooding will increase in both frequency and severity. In fact, confidence is high that climate change will increase precipitation from all weather systems, including extratropical cyclones, cold fronts, and severe convective storms.

Coastal flooding from storm surge will likely increase because of continued sea level rise and strengthening storms.