WTW and Once Concern partner on US parametric insurance tool
Advisory and broking solutions company, WTW and One Concern, a climate analytics company, have teamed up to bring climate resilience scores to the US insurance market.
The pair believe their One Concern Resilience Score (1CRX) can “facilitate a better understanding of dependency risk and accelerate the adoption of parametric insurance.”
The Score indicates the vulnerability a business has concerning downtime arising from the fragility of the infrastructure a business relies upon, such as the power grid, transportation infrastructure, and related community areas, in addition to direct property damage.
The resilience scores will be incorporated into WTW’s client-facing analytics platforms, as well as its broking workflow, to deliver a complete picture of existing building damage analyses, as well as the potential impact of vulnerable external dependencies, according to One Concern.
Through this alliance, WTW clients’ risk analyses and decision-making regarding specific mitigation steps, costs, and benefits, including alternative risk transfer mechanisms will be supported and augmented by One Concern’s analytics.
Ben Fidlow, Global Head of Risk Analytics at WTW, said: “We are always looking for ways to help our clients thoroughly understand their risk profile, along with the opportunity for us to bring actionable insights and solutions to help them smartly reduce those risks; the ability to evaluate ‘the outside the fence’ risk dynamic is of critical importance, and now we can do something about it.”
He added: “One Concern’s investment in this area is quite impressive, and we are happy to deliver this new capability to our clients. This will help us reduce the basis risk in traditional property insurance and help our clients create long-term, sustainable resilience plans.”
Ahmad Wani, Co-Founder and CEO, One Concern, commented: “We’re thrilled to incorporate our resilience score into WTW’s cutting-edge analytical solutions and demonstrate to clients that the biggest threats to their business derive from climate-related dependency risk.”
“WTW’s ability to apply the latest in disaster science will enhance their clients’ decision-making process in choosing how best to integrate physical climate risk into their resilience strategy.”
Source: Reinsurance News, One Concern partners with WTW on US parametric insurance tool - Reinsurance News