Climate risk models underestimate climate risk by as much as 50%.

A new report by S&P Global Ratings indicate that reinsurers may be underestimating climate risk exposure by up to 50%, modeling extreme weather events as less frequent than they should. Inaccurate climate risk modeling adds “significant potential for volatility in earnings and capital” and highlights the need for more advanced analytics. #risktech #insurtech #riskmanagement #climaterisk