Risks
Guy Carpenter brings you an integrated range of services designed to address multiple facets of physical risks related to climate change, while leveraging the power of other Marsh McLennan businesses to also tackle all aspects of risk.
Companies looking to develop and integrate robust climate change strategies into their overarching Environmental, Social and Governance (ESG) programs will benefit from the power of the Guy Carpenter and Marsh McLennan enterprise, along with our suite of climate advisory and modeling services.
Climate change is increasingly influencing the frequency and severity of natural catastrophe perils, with physical climate risk creating both acute and chronic threats. At the same time, the shift to a less-polluting, lower-carbon economy is spawning multiple transition risks.
Guy Carpenter is uniquely positioned to help you understand which perils and regions are most at risk due to climate change. By using catastrophe modeling tools suitable for different future time horizons and warming assumptions, geographic accumulations of risk and/or underwriting, we can enable you to quantify the impacts under potential climate scenarios on the overall volatility and tail risk of your insured portfolio.
Working in tandem with Marsh, Oliver Wyman, and Mercer, Guy Carpenter is also able to provide services that span several other climate-related areas. These services include transition risk modeling, climate investment portfolio modeling, asset-level resilience surveys and scoring, and commercial due diligence.
By applying a combination of modeling techniques, proprietary risk assessments and the latest in scientific research, you can prioritize your climate-related activities, while also benchmarking the success of your approach against industry peers.
In the insurance context, physical risks are direct damage to insured assets by weather and climatic events. Impacts: adverse losses, increased volatility, pricing weakness
Transitioning to a lower-carbon economy may entail extensive policy, legal, technology, and market changes to address mitigation and adaptation requirements related to climate change. Depending on the nature, speed, and focus of these changes, transition risks may pose varying levels of financial and reputational risk to organizations. Impacts: influence investment returns and strategy
Partnering with Guy Carpenter means benefitting from an advanced suite of solutions across the Marsh McLennan companies.
Clients must gain clarity around critical areas such as their physical exposure to climate risk, how they manage transition risk and how they underwrite towards greener outcomes. By offering this wide spectrum of climate-focused services and collaborating with the wider Marsh McLennan businesses, Guy Carpenter can help our clients achieve that clarity.
Peter Hearn, CEO
Guy Carpenter conducted a client survey in the first quarter of 2021 to assess where the industry is positioned relative to governance, physical climate change risk quantification, disclosure and strategy. We gathered nearly 50 responses, with findings consolidating along 4 different themes.
Survey results will be collected on an annual basis to track the evolution of insurance industry expectations around climate change and ESG.
