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Aon delivers climate risk assessment tool  

Aon has launched a new Climate Risk Monitor to help clients understand potential exposures facing their businesses.  

The tool will focus on visualising and mapping out “key chronic risks”, such as drought, extreme rainfall, heat, wildfire, and prolonged freezing, through diagnostic reports of targeted areas.  

The firm says data received from the tool will be made available for risk managers to help inform their decisions about property insurance pricing and optimal limits and educate insurers about risk selection.   

Aon says the model expands on existing solutions to help assess and manage natural catastrophe risks, as it notes an increasing influence of climate-related perils on the property insurance market. Last year saw $US112 billion ($171.36 billion) in insured losses caused by weather-related catastrophes.  

“In developing Climate Risk Monitor, we utilised our wide-ranging scientific and business expertise to transform a wealth of well-validated climate data into useful information for clients,” Aon Climate Risk Advisory Global Head Liz Henderson said.  

“The importance of this output extends beyond physical risk management – having a better understanding of climate exposures can also assist with human capital decisions around health and talent.”  

Aon credits its new Climate Hub in Singapore, alongside its reinsurance analytics team, for developing the project.