Insurance and investment group Allianz’s commercial insurance unit, Allianz Commercial, announced the launch of Climate Adaptation & Resilience Services (CAReS), a new platform aimed at enabling companies to identify and mitigate climate risk exposures facing their businesses.
According to Allianz Commercial, the new platform comes as businesses face growing climate risk management challenges, with climate change having a severe impact on economies globally, noting that in 2024, losses from climate-related natural catastrophes such as flood, windstorm, or hail reached $327 billion, and insured losses reached $138 billion.
Michele Williams, Global Head of Allianz Risk Consulting (ARC) at Allianz Commercial,, said:
“The question is not if a company is affected by climate risks in the future, but when it will happen. No industry is immune to risks such as floods, droughts, storms, or fires. We all remember the severe consequences from events such as the LA wildfires or Hurricanes in the US. Businesses are interrupted, and economic and insured losses are exploding into hundreds of billions of US-Dollars per year. Therefore, it is so important to understand climate risks and your exposure to them.”
The new platform includes a self-serve tool to help translate physical climate risks into financial and physical loss metrics at portfolio and location level, as well as tailored consultancy services to help businesses manage these risks.
Key features of the platform include the ability to perform climate risk assessments to identify and prioritize high climate risk exposures for key assets including locations, new investments and supplier locations, a dashboard solution providing risk scores for 12 key climate-related perils including tropical storms, floods, hail, wildfire and extreme heat, and capabilities to assess risks across four timelines, including present day, 2030, 2050 and 2080.
Dedicated consultancy services aimed at enabling businesses to put the appropriate risk mitigation measures in place, reduce downtime and support disclosures, include on-site surveys, climate hazard exposure deep dives, expert location vulnerability assessments, risk reduction and mitigation strategies, and financial loss quantification.
Michael Bruch, Head of Global ARC Advisory Services at Allianz Commercial, said:
“Resilience is a journey, not a destination. By proactively managing climate risks you can mitigate potential disruptions to your business and stay one step ahead. This is a win-win situation for Allianz Commercial as an insurer as well as for the client who can reduce its climate risks and potential losses in the future.”
