In their unique role in delivering risk information to society, insurers can indicate how insurance costs may be expected to rise over the next couple of decades. They will need to anticipate what lies ahead so they can play an active role and lobby for actions that will help sustain insurability. (Credit: BillionPhotos.com/Stock.adobe.com) In their unique role in delivering risk information to society, insurers can indicate how insurance costs may be expected to rise over the next couple of decades. They will need to anticipate what lies ahead so they can play an active role and lobby for actions that will help sustain insurability. (Credit: BillionPhotos.com/Stock.adobe.com)

Goal number one for the upcoming COP26 conference in Glasgow, Scotland, is to secure global net-zero carbon emissions by mid-century and keep 1.5 degrees Celsius temperature rise within reach. Everyone will need to work together to accelerate the actions required to tackle the climate crisis, with collaboration between governments, businesses and civil society. How does the insurance and wider risk management industry play its part in the race to net zero, and how can catastrophe risk modeling, which has helped the industry better understand risks, achieve this?

Going back to 1989 when RMS was founded, catastrophe modeling has continued to help provide core capability to enable the functioning of the global property insurance and reinsurance sectors. The understanding that the historical record of hurricanes, floods or earthquakes is too short to reliably base the quantification of risk forms the basis of a catastrophe model.

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