Conning to launch climate risk scenario analysis tool

Published in: Risk management, Conduct risk, Corporate strategy, Regulation, Asset management, UK, Rest of Europe, US - Canada - Bermuda, ROW, Software - IT, Climate change and sustainability

Companies: Conning

Conning will launch a software-as-a-service (SaaS) scenario analysis tool this month to help insurers assess the impact of climate change for strategic planning and regulatory reporting.

The SaaS Conning Climate Risk Analyzer will have an alpha launch in the early part of this month and a beta release at the end of March.

Featuring stochastic projections, the tool aims to help insurers better understand the effect of different climate scenarios on a given asset allocation.

Insurers' focus on climate risk has accelerated over the last 12-18 months prompting Conning to launch a risk reporting service for insurers in November 2020.

Matthew Lightwood, Conning's global product manager, told InsuranceERM: “Later in the year, we are also planning additional climate-related functionality in our software, such as ESG [environmental, social and governance] indices within our economic scenario generator.”

UK insurers will face climate stress tests this June and reporting of climate information will be mandatory by 2025. Listed French insurers have had to report on financial risks of climate change since 2016.

Conning won climate risk management solution of the year in the InsuranceERM UK & Europe 2021 awards.

Ronan McCaughey