Aon Launches Climate Risk Monitor

Aon has launched its Climate Risk Monitor, collaborating with Aon’s brokers to help clients assess their exposures to physical climate risk and thereby adjust insurance placements while obtaining optimal limits and renewals pricing. The Climate Risk Monitor allows clients to assess and manage evolving risks in locations with projected climate related impacts – thus enabling better climate disclosures, risk transfer strategies and resiliency planning.

Aon says the tool can assess an organization’s current and future exposures to key chronic risks – drought, extreme rainfall, extreme heat, freeze and wildfire – under different climate change scenarios, providing diagnostic reports on individual asset and portfolio impact, as well as geographical visualizations. To do so, Aon uses standard IPCC (SSP-RCP) emissions scenarios over multiple time horizons that align with regulatory requirements. To produce relevant peril metrics, Aon leverages a range of global climate model outputs from different global academic and government institutions, as part of the Coupled Model Intercomparison Project Phase 6, whose results are used in IPCC assessment reports.

The Climate Risk Monitor was developed by Aon's recently launched Climate Hub, in collaboration with the firm’s global reinsurance analytics experts. It is the latest in Aon's expanding suite of climate related initiatives and solutions, which include the firm’s Impact Forecasting suite of global catastrophe models; consulting in enterprise risk management, engineering, casualty and transition risk; and 14 global academic collaborations.

“In developing Climate Risk Monitor, we utilized our wide-ranging scientific and business expertise to transform a wealth of well-validated climate data into useful information for clients," said Liz Henderson, global head of Climate Risk Advisory for Aon. "The importance of this output extends beyond physical risk management – having a better understanding of climate exposures can also assist with human capital decisions around health and talent.”

Source: Aon, https://aon.mediaroom.com/news-releases?item=138298