AXA Launches Two New Climate Solutions

AXA Climate, which has established itself as a leader in climate risk insurance products and services, announced today a strategic partnership with Reask, a leading provider of climate risk modeling solutions, through which they provided advanced parametric insurance solutions based on precise location-level wind speed data following tropical cyclone landfalls, worldwide.

AXA Climate says the partnership represents a forward-thinking approach to parametric insurance in leveraging advanced data analytics to improve affordability, risk management and claims responsiveness following climate-related events.

“Choosing Reask as our partner was a strategic decision driven by their ability to deliver quality, high-resolution data on a global scale. Their approach to probabilistic modelling empowers us to calibrate and structure parametric contracts with precision, ultimately benefiting our clients with faster and more accurate risk transfer solutions" said Regine Mollenhauer, Chief Underwriting Officer at AXA Climate.

“This partnership with AXA Climate underscores our team’s passion for developing and applying cutting-edge science to real-world problems. AXA Climate’s recognition of our unique position in offering high-resolution, high-quality data globally aligns with our mission to become the currency for parametric insurance products. We’re truly excited to embark on this journey with AXA Climate, driving positive change and resilience in the face of climate risks” said Jamie Rodney, CEO of Reask. “Partnering with AXA Climate marks a pivotal moment for Reask, as it validates our commitment to providing the insurance industry with the most sophisticated climate risk data available. AXA Climate’s readiness to integrate our globally consistent data into their parametric insurance solutions showcases the transformative potential of data in further reducing the protection gap” added David Schmid, Head of Parametric Products at Reask.

Separately, AXA Climate announced the launch of Altitude Agriculture, a digital platform for measuring the impact of climate change on crop production. AXA says the tool will help the stakeholders in the food-processing industry increase the sustainability and climate resilience of their operations. Altitude takes into account the specific local conditions of farming and the types of soil and crops used to predict the water requirements of crops, measures the impact of water scarcity and specific climate hazards on crop yields - and tests various adaptation scenarios through 2030 and 2050 based on the latest climate science and data. AXA says Altitude also enables prioritization of adaptation measures based on the attributes of the system of production - including a more resilient selection of crop varieties, offsetting periods of production, improvements to the quality of soil, optimising the irrigation process - and simulates changes in yields and the financial impacts depending on the adaptation scenario.

"In response to climate change and its increasingly serious consequences, Altitude is a genuine decision-making support tool, based upon solid scientific data. There is no doubt that it’s the type of initiative which the agricultural sector will need to seize in order to address the changes which lie ahead’’, said Lucile Dauger, an agronomist and agricultural transition expert at AXA Climate. ‘’It allows those working within agriculture to accurately measure their farm’s exposure to climate risks and simulate various adaptive measures in order to pinpoint the strategy which they believe is the most optimal one for them.

Source: AXA Climate, https://climate.axa/axa-climate-altitude-agriculture-fist-digital-tool-climate/ | Reask, https://reask.earth/2024/03/14/reask-and-axa-climate-announce-partnership-on-parametric-windstorm-insurance/