Cat models ‘must evolve to track climate change’
The insurance industry must strengthen its catastrophe risk modelling to anticipate climate change scenarios, according to the Geneva Association.
Models could be extended to assess extreme weather risk across the life cycle of infrastructure projects, which would enhance infrastructure climate resilience, the insurance think tank says.
They should connect to other modelling systems such as those applied in economic analysis, infrastructure, health and the “water-food-energy nexus”.
This will lead to improved policymaking, planning and risk management decisions, the association says.
Secretary-General Anna Maria D’Hulster says as climate change becomes more severe, the industry must keep up with market demand.
Enhanced cat modelling may also support climate insurance products and services, according to the association.