Finity says it can provide Australian insurers with advanced quantitative climate scenario analysis under a partnership with Ortec Finance.

Ortec’s models help measure the financial impact of global heating on investment portfolios under the Australian Accounting Standards Board S2 climate standards.  

Finity will align model outputs with client portfolios, and project investment returns and asset values under a range of climate scenarios.  

“This partnership significantly raises the capabilities we can deliver to our clients on their investment portfolios,” the actuarial consultant’s principal Jon Tindall said.

“By combining [Ortec’s] models with Finity’s investment, insurance and banking expertise, we can provide clients with a robust, forward-looking view of climate risks across both assets and liabilities.”

Climate scenarios developed by Ortec and Cambridge Econometrics generate economic and financial variables for all asset classes, geographies, sectors and carbon benchmarks.  

Insurers can identify how asset allocations may perform and how to enhance shareholder value. 

Understanding climate transition risks is critical to maintain long-term portfolio resilience, Finity says.