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.

Read the Perspectives article: Building a Climate-Resilient Future

three hurricanes

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.

Storm clouds

Natural Catastrophe

Growing corn

Agriculture

Houses

Casualty

Buildings

Corporate

Family on beach

Life and Health

Container ship

Supply Chain

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.

Climate change perils chart

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.


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