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
For illustrative purposes only.
Quantifying the Financial Impacts of Climate Change
The growing threats of climate related extreme weather events pose significant risks to financial markets. However, existing models of the financial impacts from climate-related events may incorrectly lead analysts to believe that there is little material risk in the short and medium term. Conning’s new white paper, co-authored with the University of Maryland, introduces a novel approach to modeling the interaction between climate-related physical and transition risks. The inclusion of tipping points provides a more robust way of quantifying the possibility of large financial impacts at time horizons relevant to regulatory reporting.

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Beyond Stress Testing