Willis Launches Advanced Climate Diagnostic Tech to Tackle Property Insurance Volatility

Quick Summary

Willis, a WTW business, has launched an enhanced Climate Diagnostic model to help property owners and risk managers mitigate climate change volatility. By predicting the impact of floods and windstorms on global assets, the technology enables businesses to build resilience and maintain insurability as extreme weather risks rise.

How Does Climate Diagnostic Address Climate Change Volatility?

Climate change volatility is fundamentally altering the property insurance landscape, leading to higher premiums and coverage withdrawals. Willis solves this by embedding advanced risk analytics directly into broking workflows and engineering surveys. This integration allows for real-time risk scanning, ensuring that climate threats are not an afterthought but a core component of financial planning.

• Predictive hazard modeling for floods, windstorms, and acute climate threats.
• Scenario-based assessments across short, medium, and long-term horizons.
• Interactive exposure maps that pinpoint financial vulnerability at the asset level.

What Are the Strategic Benefits for Risk Managers?

Risk management strategies must evolve from reactive to proactive to survive current market shifts. The Climate Diagnostic tool provides a forward-looking lens that allows organizations to stress test their current finance strategies against rising climate volatility. By identifying high-risk areas early, businesses can implement physical adaptation measures or explore alternative risk transfer solutions before traditional insurance becomes unsustainable.

Peter Carter, Head of Climate Practice at Willis, said: “The volatility and frequency of climate hazards are increasing. Embedding Climate Diagnostic in broking workflows and engineering surveys sets a new industry standard, with clients benefiting from a built-in scan of the risk against ongoing climate change volatility.”

How Does This Technology Improve Future Insurability?

Improving future insurability is the primary goal for assets located in high-risk zones. The platform estimates the total portfolio value exposed to extreme weather, providing the data needed to negotiate better terms with insurers. By demonstrating a scientifically sound understanding of their specific risk profile, companies can prove their resilience to underwriters even amidst global climate instability.

Peter Carter said: “Early sighting of assets exposed to climate-related perils gives risk managers the chance to build resilience, improving future insurability before disaster strikes.”

FF NEWS TAKE:

This move by Willis is a necessary evolution in the face of climate change volatility. As traditional insurance models struggle with unpredictability, providing granular, data-driven insights is the only way to close the widening protection gap. By moving these analytics into the standard broking workflow, Willis isn't just offering a tool; they are redefining risk engineering standards for a world where climate risk is the primary driver of property value.