Climate Risk

Government, business leaders and industry regulators know that climate change represents a systemic financial risk that can no longer be ignored.

Finity can help insurers and banks navigate climate change science and quantify their exposure to climate risk at a granular level.

Finity-Background-22

For over a decade our Climate Risk Practice has provided clients with business solutions developed from our deep understanding of the physical and financial risks associated with natural perils such as storms, floods, bushfires and cyclones.

Climate
risk assessment

We provide an initial assessment of your current exposure to ‘Transition’ and ‘Physical’ risk and will detail the impacts that climate change has had on your company to date.  This will include impact on costs to date and assessment of how you can manage/monitor impacts in the future.

Weather risk linked parametric pricing

We have extensive experience using weather data including weather data including weather station observations, gridded data and reanalysis datasets.  We have used these to calibrate a number of parametric insurance covers, taking into account effect of climate change and long term cycles (IOD, IPO, ENSO).

Scenario
testing

With significant uncertainty around
the range of possible future outcomes, scenario testing can be used to enhance the strategic conversation about the future. We can help determine what scenarios will provide the most value to your organisation and help articulate the impact of these scenarios on your business.

Climate
disclosures

Concerns about the threat to global financial stability from climate-related risks have culminated in the Task Force on Climate-related Financial Risk Disclosure (TCFD) releasing a globally consistent framework for climate disclosures. This has received widespread support from investor groups, regulators and financial institutions.

Industry leading
natural peril models

Our natural peril models, provide accurate address level risk information for each property in Australia. Using the available science we re-calibrate these models for a future warmed environment to provide an understanding of how this risk will change under various future scenarios.

Financial
modelling process

We can work with you to build a
financial model that is needed to measure climate risk impacts i.e. translating changes in the physical
risk into financial impacts. This will be a robust and flexible process that can incorporate the science as it continues to evolve.

Our skillset brings together a unique combination of climate and environmental science, data science, and actuarial financial discipline.

Australia's first Climate Index

Our team worked closely with the Actuaries Institute to develop a Climate Index to track changes in the frequency of extreme weather.  This involved a detailed understanding of weather station data in Australia in consultation with Australia’s Bureau of Meteorology, Commonwealth Scientific and Industrial Research Organisation (CSIRO), leading insurance and natural hazard scientists and regulators.

The Climate Index includes measures of high and low temperatures, heavy precipitation, dry days, strong wind, and changes in sea level.  The index is currently available nationally and across 12 regions of Australia and is updated quarterly as data for each meteorological season becomes available and is hosted here.

Latest from the Finity Climate Risk Update Blog

Listen to climate insurance experts,
Tim Andrews and Pulkit Jain
answer these questions and more...

Contact us to discuss how to navigate climate risk.

Tim Andrews

Tim Andrews

Ph  +61 2 8252 3385
Mobile  +61 405 189 549
tim.andrews@finity.com.au

Tim Andrews

Pulkit Jain

Ph  +61 2 8252 3370
Mobile  +61 425 277 915
pulkit.jain@finity.com.au

We work with you to understand your exposures as well as ensure compliance with these TCFD recommendations, APRA expectations and also director’s legal obligations.