S&P Global Energy and Verisk have entered into a a new data-sharing collaboration designed to provide climate catastrophe exposure data and insights for the financial and insurance sectors. The firms say the move will enable clients in these sectors to quantify the insured and uninsured financial impacts of future climate and near-term natural catastrophe events.

Through the collaboration, Verisk’s physically based near-present climate catastrophe risk data will be integrated into S&P Global Sustainable1 Climanomics physical climate risk platform, to enhance the capability to assess insured versus uninsured losses due to climate change. The introduction of insurance data aims to fill a critical gap identified by regulatory authorities and emerging central bank stress tests.

Additionally, the S&P Global Sustainable1 climate-adjusted inland flood data will be incorporated with Verisk event simulations to generate a set of future-projected climate events modelled for the first time through 2050. This dataset will be delivered through Touchstone – Verisk’s catastrophe risk modelling – platform to translate the impact of climate change on flood event intensity and insurable loss, enabling estimation of future changes to portfolio risk due to climate change for insurers.

Rob Newbold, president of Verisk Catastrophe and Risk Solutions, said: “Financial institutions are under pressure to quantify climate risk with accuracy and transparency. By combining Verisk's state-of-the-art catastrophe models with S&P Global Energy's climate risk analytics, we're empowering the market with a credible, and auditable foundation for strategic decisions addressing climate and physical risks.”

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