Aon and Columbia University, an Ivy League research university based in New York, have renewed their partnership until 2027 to enhance research on the correlation of climate risk between various perils and regions.
The renewal follows a successful initial collaboration during which Columbia’s latest peer-reviewed climate science was integrated into Aon’s Impact Forecasting tropical cyclone catastrophe model suite, according to InsurTech Insights.
This integration has led to significant advancements, including the incorporation of advanced climate change perspectives in all stochastic runs of this year’s release of Impact Forecasting’s Hurricane Model v3.0.
The second phase of the partnership will continue to investigate the impacts of climate model biases on future tropical cyclone risks.
Notably, Columbia’s research has indicated that recent climate model simulations predict excessive warming in the Eastern Pacific Ocean due to greenhouse gases.
This suggests that models may overestimate cyclone activity in the Pacific and underestimate the severity in the Atlantic.
Future research aims to refine and quantify these uncertainties, leveraging improved climate models to better predict tropical cyclone risks and subsequent losses in Aon’s Impact Forecasting model.
Aon provides a broad range of risk, retirement, and health solutions. Its services include risk management, insurance and reinsurance brokerage, human capital and management consulting.
Columbia University is a renowned educational institution known for its strong emphasis on research and innovation. Its contributions to climate science are globally recognised, providing critical insights into environmental changes and their implications.
As part of the renewed agreement, Aon and Columbia University will work to further understand how global climate factors influence multi-peril and multi-region losses.
The research aims to help global organisations navigate volatility, build resilience, and ultimately shape better business decisions.
Patrick Kelly, head of climate analytics for North America at Aon, commented on the announcement of the renewal, “Climate risk across geographies and perils is interconnected and represents a significant area of uncertainty for the re/insurance industry.”
“Aon and Columbia will continue to work together to understand how global climate factors influence multi-peril and multi-region losses. This research will help global organisations navigate volatility, build resilience, and ultimately shape better business decisions.”
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