RMS launches new climate change models

Catastrophe risk solutions company, RMS is to launch a new suite of climate change models to help customers assess the near and long term impacts of climate change on physical assets and their businesses.

Most RMS models, including all major peril models, already incorporate the impact of climate change – but more is required to meet the evolving and significant market needs, with the new models featuring forward-looking predictive insights and analysis.

According to RMS CEO, Karen White, “Today there are no robust or consistent frameworks that can quantify the physical risks posed by catastrophes in a changing climate at the depth required. The innovative suite of RMS Climate Change Models changes that, giving the market a powerful new set of tools. With increasing board-level attention, stakeholder scrutiny, and regulatory pressure, businesses need to operationalise climate change analytics to make better decisions and enable better transparency.

“It is clear that the financial impacts of climate change are not solely a ‘future problem’. The increasing incidence of wildfires, floods and hurricanes mean that climate change insights need to be incorporated into financial decisions that are being made today, in parallel with long term strategic planning and meeting increasing regulatory, environmental, social and governance and TCFD reporting requirements, and investor and customer demands. This necessitates a climate change framework and models fully consistent with today’s catastrophe risk analytics and one which addresses the challenges posed by physical climate change risk and its broad impact across all relevant time scales – from today through to the end of the century.”

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