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XL Catlin backs ocean risk modelling project

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XL Catlin is supporting a US think tank’s work to produce a predictive mapping model that identifies the developing coastal communities most vulnerable to climate change.

Plans for the Stimson Centre’s project were presented at the XL Catlin-sponsored Ocean Risk Summit in Bermuda last week, where insurers heard the industry cannot afford to ignore the impacts of rising sea levels and temperatures.

“When public policy aligns with business interests, we can better mitigate risk,” XL Catlin EVP Emerging Markets Brendan Plessis said.

“This multi-sectoral approach is key to delivering real change in communities that need it most and we’re proud to be working with the Stimson Centre to achieve these aims.”

XL Catlin-funded research presented at the summit shows new risk modelling and insurance solutions are required to tackle emerging ocean risks.

Insurers can tap into the $US24 trillion ($31.9 trillion) “blue economy” if they get their strategies right.

“Such ecosystem risk models would have the potential to unlock new insurance markets in the space spanned by ocean risk, international development programs and the blue economy,” the research report says. “Business opportunities for the insurance industry will arise in the form of new insurance solutions to transfer ocean risk.

“In addition to insurance products for loss of ecosystem services, there is an immediate demand for more standard products based on physical assets.”