Dive Brief:
- The commercial insurance arm of German life insurance and financial services company Allianz unveiled a platform Wednesday that seeks to help businesses evaluate and mitigate the climate risk exposures they face.
- Allianz Commercial said its data-driven Climate Adaptation & Resilience Services, or CAReS, platform will give companies access to consulting expertise and a self-service tool that will help them convert physical climate risks into portfolio-level financial and physical loss metrics.
- The CAReS tool also aims to help companies perform assessments that will identify and highlight the key assets that have high climate risk exposure, such as assets in certain locations, supplier sites and new investments, according to the July 2 release.
Dive Insight:
Allianz, the world’s largest insurer, said companies using the platform can better understand their climate-associated risks and the impact they have on company assets by utilizing the platform’s dashboard. The dashboard provides risk scores for 12 environmental “perils,” including floods, wildfires, hail, tropical storms and more. Companies can also track the impact of these climate-related disasters across four different timelines on the platform: present day, 2030, 2050 and 2080.
The insurance giant said CAReS was developed in collaboration with its clients and is the first product in a set of solutions Allianz Risk Consulting plans to unveil this year as part of a strategy that boosts the “relevance of resilience.”
“The question is not if a company is affected by climate risks in the future, but when it will happen,” Michele Williams, global head of Allianz Risk Consulting at Allianz Commercial, said in the release. “No industry is immune to risks such as floods, droughts, storms, or fires.”
Williams added that CAReS was developed to give clients the “option to address and mitigate their risks as well as to avoid surging insurance costs in the future.”
The CAReS platform comes almost a year after Allianz debuted its Sector Assessment of Multiple Emissions pathways dashboard, or SAMEpath. The SAMEpath dashboard tracks the emissions reductions and investments required for countries to achieve the net-zero commitments they made in the 2015 Paris Climate Agreement. SAMEpath, like CAReS, includes a risk assessment portion, with the SAMEpath tool allowing users to examine transition risks under scenarios including limiting global temperature rises to below 1.5°C, remaining below 2°C and the overshoot scenario the world is currently on track for.
