Climate Risk Analysis

Insurers and pension plans are facing increased pressure to understand the impact of climate risk on both sides of the balance sheet. While the concept is well developed on the liability side, Chief Risk Officers and the actuarial function are now also seeking to assess the effects of both transition and physical climate risk on their asset allocations. Insurers and pension plans need to understand how different climate change scenarios might affect the financial markets and their holdings over a range of time horizons.


Conning Climate Risk Analyzer™

Deterministic stress tests provide few actionable insights into climate impacts on asset portfolios. Conning Climate Risk Analyzer™ brings climate stress testing to life, providing insurers with new tools to explore the impact of climate change for strategic planning and regulatory reporting. Conning Climate Risk Analyzer™ combines stochastic projections from the GEMS® Economic Scenario Generator with the latest thinking on climate change effects within financial markets.

Beyond Stress Testing

Conning Climate Risk Analyzer™ brings climate stress testing to life, providing insurers with new tools to explore the impact of climate change for strategic planning and regulatory reporting. Conning Climate Risk Analyzer™ combines stochastic projections from the GEMS® Economic Scenario Generator with the latest thinking on climate change effects within financial markets.


Functionality includes:

  • Scenarios of varying severity, including an orderly transition scenario, a disorderly transition scenario, a failed climate policy, and others
  • Attribution between transition and physical risk and other risk sources
  • Exploration of the different possible timings of market impacts that a scenario may cause
  • A rich set of portfolio risk analytics, including VaR and Excess Climate Risk
 
Beyond Stress Testing