Allianz Commercial, the commercial insurance division of Allianz, has introduced a new platform, Climate Adaptation & Resilience Services (CAReS), designed to assist companies in identifying and mitigating climate-related risks. As businesses increasingly grapple with climate risk management challenges, Allianz Commercial highlights the severe global economic impacts of climate change. In 2024, climate-related natural catastrophes, including floods, windstorms, and hail, resulted in losses amounting to $327 billion, with insured losses reaching $138 billion.
Michele Williams, Global Head of Allianz Risk Consulting at Allianz Commercial, emphasised the inevitability of climate risks affecting businesses. She noted that no industry is immune to risks such as floods, droughts, storms, or fires, citing past events like the LA wildfires and hurricanes in the US, which led to significant economic and insured losses. She underscored the importance of understanding and preparing for climate risks.
The CAReS platform offers a self-service tool to translate physical climate risks into financial and physical loss metrics at both portfolio and location levels. It also provides tailored consultancy services to help businesses manage these risks. Key features of the platform include climate risk assessments to identify and prioritise high-risk exposures for critical assets such as locations, new investments, and supplier sites. Additionally, it offers a dashboard solution that delivers risk scores for 12 key climate-related perils, including tropical storms, floods, hail, wildfire, and extreme heat. The platform also facilitates risk assessments across four timelines: present day, 2030, 2050, and 2080.
The consultancy services are designed to enable businesses to implement appropriate risk mitigation measures, reduce downtime, and support disclosures. These services include on-site surveys, in-depth climate hazard exposure analyses, expert assessments of location vulnerabilities, risk reduction and mitigation strategies, and financial loss quantification.
Michael Bruch, Head of Global ARC Advisory Services at Allianz Commercial, stated that resilience is an ongoing process. By proactively managing climate risks, businesses can mitigate potential disruptions and maintain a competitive edge. This approach benefits both Allianz Commercial as an insurer and clients who can reduce future climate risks and potential losses.
