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RMS offers new suite of climate change models

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RMS is introducing a range of new climate change models as higher rates of wildfires, floods and hurricanes demand that climate insights are incorporated into financial decisions.

The new offering will help customers assess impacts on their assets and businesses and make the best possible risk and financial decisions, RMS says.

In June, services for major perils such as North Atlantic Hurricane, Europe Inland Flood and Europe Windstorm will be available, with further models and geographies to follow.

RMS CEO Karen White says increasing board-level and stakeholder scrutiny and regulatory pressure means businesses need the best climate change analytics for decision making and transparency.

“Climate change insights need to be incorporated into financial decisions that are being made today, in parallel with long term strategic planning and meeting increasing regulatory, environmental, social and governance ... demands,” Ms White says.

The RMS models are supported by a proprietary exposure database to deliver more accurate and impactful climate change assessment.

RMS says they allow organisations to price and manage risks to better reflect changing conditions, as well as to confidently communicate risks posed by climate change to all stakeholders and to comply with regulatory submission requirements.

QBE Group Head of CAT Accumulation Management Eric Letourneau says RMS insights have helped the insurer report risks to financial stakeholders and to develop and test strategy for its business.

“We can embed these analytics in our business processes, confident that we have consistency with how we measure underwriting risk and capital requirements now and in the future,” he said.