Why Choose Aon?
Through our global, multidisciplinary team, Aon has the capability to provide data and analytical expertise to enable a deep understanding of your organisation’s climate risks. Our Aon United operating platform enables us to bring more of our firm to our client engagements, and most importantly, it empowers us to leverage the best of our firm for the benefit of yours.
|Catastrophe Modeling||Impact Forecasting, AIR||
|Climate Risk Modeling||The Climate Service - Climanomics||
|Mapping and Visualisation||Impact on Demand||
|Climate Risk Advisory and Risk Transfer||Insurance, Capital Market Solutions||
In June 2020, Aon formally announced a collaboration with The Climate Service (TCS) to help clients understand and manage climate risk today and into the future. The decision came after deep investigations into the TCS methodology with our reinsurance analytics experts, which is reflected in a recent Forrester Research report that ranked different climate analytics providers. Our relationship with The Climate Service combines science and technology to measure, monitor and manage the financial impacts of climate on business and investments. The combined services bring together complementary analytics with a climate focus.
The TCS Climanomics® analytics platform enables reporting and disclosure consistent with the TCFD framework and empowers decision-making by putting a price on both transition and physical risk. With multiple climate scenarios covering present day to the year 2100, insights from the platform help investors and businesses manage risk, build resilience, and drive change.
Aon is also a member of ClimateWise, an organisation comprised of members from the insurance industry that is dedicated to communicating, disclosing and responding to the risks and opportunities associated with the growing divide between total economic and insured losses attributed to climate change.
Aon’s Approach to Climate Change
Greater attention is being paid to climate change, where the effect of greenhouse gas (GHG) emissions is predicted to raise global temperature. It is also anticipated that extreme weather events may become more likely in certain regions and potentially more intense. This focus is driving global economies towards carbon neutrality, and that philosophy reinforces the general trends of sustainability and corporate social responsibility.
The effects of climate change risks are felt across all activities of a business – the value proposition, properties, staffing, supply chain, and so forth. The challenge for businesses, industries and investors is to understand this changing risk profile, particularly in the management of transitions as industry attempts to maintain resilience in the course towards a zero-carbon future.
Climate model’s downscale climate science into scenario-based narratives that describe both physical and transition risk.
Climate models can:
- Provide a translation of climate risk into financial metrics at an aggregate or per peril basis
- Look at different time horizons and scenarios which illustrate critical decision pathways
- Allows implementation of climate science into investment and strategic decision making
- Enable risk consulting to align climate analytics into total cost of risk approach, balancing retention, risk control/mitigation, and transfer according to appetite
- Align to and must be led by a governance approach.
The Climate Service - Climanomics®
Aon is excited to offer our agreement with The Climate Service to deliver data and insights into climate-related natural hazards for our clients. The Climate Service (TCS) provides climate risk analytics to investors and businesses with support from a scientific team and advisors including four IPCC Nobel Prize-winning scientists. The TCS Climanomics® analytics platform enables reporting and disclosure consistent with the TCFD framework and empowers decision-making by putting a price on both transition and physical risk. With multiple climate scenarios covering present day to the year 2100 and ‘one-click’ property/property and portfolio-level analysis, insights from the platform help investors and businesses manage risk, build resilience, and drive change.
Climanomics® risk analytics system is TCS’s web-based software that provides clients with knowledge of what their risks are, where they are, and what trends they can anticipate over decades and across multiple scenarios so that they can manage these risks strategically. From portfolio management to due diligence to arbitrage on over/under-valued properties, the information provided by the Climanomics® system enables us to help clients embed climate risk into their operational and strategic financial decisions.
Insuring Climate Risk in 2021
How are we building weather and climate resilience for the next decade?
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