What has become clear is that insurers need to consider the impact on climate change across their whole business; and the market as a whole is dynamic. This means taking an integrated approach to climate risk assessment and we have produced a framework to help insurers do just that, together evolving climate risk data, models and software as needs emerge.
The Real-World Economic Scenario Generator (ESG) contains stochastic asset models and calibration content that support realistic projections of asset returns and risk-factor distributions. The ESG allows insurers, asset managers, and institutional advisers to undertake a wide range of risk management and asset liability modeling (ALM) activities.
"The investment industry needs to start measuring ex-post performance in terms which go beyond risk-adjusted returns. If the rate of decarbonisation of portfolios was measured and combined with a ratcheting portfolio cost of carbon, this would help position investors for transition," says Nick Jessop, Senior Director of Research at Moody's Analytics.
Nick is recognized by InsuranceERM on their Most Influential on Climate Change list in 2021.
More Awards
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Chartis RiskTech100® 2021: Climate Risk Category Winner
Severe climate events throughout 2020 underscore the importance and urgency for market participants to understand how climate change is already affecting—and will continue to affect—the risk and return of their portfolios.
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InsuranceERM Awards 2021: ERM End-to-End Solution of the Year
Moody's Analytics has won Economic Scenario Generator Software of the Year for the fourth time.
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InsuranceERM Americas Awards 2021: ESG (Economic Scenario Generator) Software of the Year
Moody's Analytics wins Economic Scenario Generator software of the year for the second straight year.
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InsuranceERM Americas Awards 2021: Stress scenarios software of the year
To help insurers during the pandemic, Moody's Analytics provided stress testing scenarios on a deterministic and stochastic basis, enabling insurers to understand the possible recovery scenarios and impacts across global markets.