Climate Change

Explore the sensitivity of catastrophe risk to a changing climate.

Verisk Analytics Statement on Climate Change

Insurers, reinsurers, financial institutions, and policymakers are being asked increasingly pointed questions about their preparedness for the possible effects of a changing climate. AIR takes an active role in modeling climate change and is committed to helping the global community understand, measure, and manage the associated uncertainties.

AIR conducted a research study in collaboration with the Brookings Institution and AXIS on the impact of climate change on U.S. hurricane risk.

Read: Quantifying the Impact of Climate Change

Evaluate the Impact of Climate Change on Different Verticals

AIR’s Climate Change Practice 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.

A crucial factor in managing climate risk is making sure that the current risk is properly priced. Our modeling tools and solutions capture the current and future view of the risk. In addition, we are using innovative methods to project how this risk will evolve as the Earth’s atmosphere continues to warm.

Natural Catastrophe

Agriculture

Casualty

Corporate

Life and Health

Supply Chain

Learn About AIR’s Climate Change Risk Management Solutions

Impact of Climate Change on Atmospheric Perils

For more than two decades, AIR has been an active part of a global community of scientists researching the potential impacts of climate change on extreme events. Scientists at AIR have collaborated with various entities—including the UK’s Met Office, Geoscience Australia (GA), the Association of British Insurers (ABI), and the City of Miami Beach—to quantify the impact of rising sea levels and surface temperatures on the financial losses resulting from natural disasters.

Explore our work with ABI on the impact of climate change on insurance losses for UK windstorms

The results of this growing body of research are helping insurers and other organizations achieve a better understanding of their sensitivity to the risk of climate change, make more informed business decisions, and better meet regulatory requirements.

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 AIR’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.

Climate Change Impacts on Extreme Weather

Develop a Comprehensive View of Climate Change Risk

We understand the crucial role that data and technology play in climate risk mitigation and your ability to accurately assess and price the risk. We are committed to developing better ways to help you manage and reduce this uncertainty and to work with you to design better solutions for the future. AIR’s extreme event models quantify the current and future impact of climate change and we are actively working with partners in the insurance industry and the broader scientific community to explore how the risk of different perils is likely to change around the world. For more information about our solutions and to explore how we could work together with you, download our Climate Change Practice Solution Brief or contact AIR’s Climate Change Risk Consultants.

Download our Solutions Brief

Contact AIR’s Climate Change Consultants