Climate change stress tests: implications for insurers & catastrophe models

In this discussion with RMS we continue our theme of reviewing the impact of the Bank of England Climate Biennial Exploratory Scenario (CBES) released in June.

Matthew and Joss Matthewman, Senior Director, Climate Change Product Management & Strategy at RMS reviewing the cornerstones of climate change forecasting and terminology, breaking the various reporting requirements and outlooks into their fundamental elements.

Using the different Representative Concentration Pathways (RCP) and the corresponding temperature increases, Matthew and Joss review what the physical changes to catastrophic loss could be and how these can be represented in a model.

Issues such as climate conditioning of models, and why these require key changes in how catastrophe models are provided and used are identified with useful guidelines for users of RMS and other models.

Watch the discussion in full using the video player below.