S&P Global Energy announced a new data-sharing collaboration with Verisk, a global provider of data analytics and technology for the insurance industry, to provide climate catastrophe exposure data and insights to the financial and insurance industries.
S&P Global Energy, a division of S&P Global, provides essential data, price benchmarks and analysis for global energy and commodities markets.
The partnership, which brings together differentiated data from both companies, will enable these industries for the first time to quantify the insured and uninsured financial impacts of future climate events and near-term natural disasters, creating a new industry benchmark for climate risk intelligence, the announcement said.
Record losses from recent natural disasters highlight the urgent need for robust forward-looking risk analysis to protect assets and achieve sustainable growth.
The collaboration aims to address a critical market gap and provide insurance and financial institutions with a strong, auditable foundation to manage climate risk with more precision than before.
Through this collaboration, Verisk’s physics-based near-term climate catastrophe risk data will be integrated into the S&P Global Sustinable1 Climanomics physical climate risk platform to improve the ability to assess insured and uninsured losses from climate change.
The companies stressed that including insurance data fills a key gap identified by stress tests by regulators and emerging central banks.
In addition, S&P Global Sustainability1 climate-adjusted inland flooding data will be combined with Verisk event simulations to generate, for the first time, a set of future climate event models projected out to 2050.
Insurers will be able to use this cutting-edge data set to estimate future changes in climate change risks to their portfolios.
Delivered through Verisk’s catastrophe risk modeling platform Touchstone®, it translates the impact of climate change on the intensity of flood events and resulting insurable losses.
Verisk and S&P Global Energy integrated solutions bridge the risk intelligence gap in four key industries: insurance, finance, asset management and real estate.
In the insurance sector, the solution helps reduce underwriting uncertainty for future flood risks and enhances portfolio stress testing and capital allocation.
In finance, it provides decision-level data to meet regulatory disclosure requirements and move from simple stress testing to proactive risk mitigation strategies.
For asset management, integrated solutions extend climate and physical hazard risk analysis with decision-level data to optimize portfolios and understand uninsured risk.
It also combines robust modeling with risk insights to identify growth opportunities and assess a property’s rural exposure.
“Financial institutions are under pressure to accurately and transparently quantify climate risk,” said Rob Newbold, president of Verisk Catastrophe and Risk Solutions. “By combining Verisk’s most advanced catastrophe models with S&P Global Energy’s climate risk analysis, we provide the market with a trusted and auditable basis for strategic decisions to address climate and natural risks.”
This integrated solution gives S&P Global Energy and Verisk clients more flexibility and confidence to stress test their portfolios, assess compliance with climate goals and address solvency and capital efficiency challenges.
“We are committed to innovation, and we are excited to offer this new risk solution to our clients and markets to help them model and mitigate physical risks,” said Thomas Yagel, head of sustainability1 at S&P Global Energy Horizons. “Together we are helping clients move from reactive climate-related compliance to proactive resilience, setting a new standard for how the industry responds to risk in a changing world.”
