MSCI and Swiss Re Join Forces to Combat Climate Risk in the Financial Sector

MSCI and Swiss Re Join Forces to Combat Climate Risk in the Financial Sector

In a significant development in the reinsurance industry, MSCI has teamed up with Swiss Re Reinsurance Solutions to tackle the pressing issue of climate risks. This partnership aims to empower financial institutions to better assess and manage physical climate risks, particularly as they pertain to investments and asset management strategies.

The Partnership Overview

MSCI, renowned for its sophisticated analytical tools, is committed to helping investors identify both opportunities and risks within their portfolios. Conversely, Swiss Re specializes in providing innovative reinsurance and insurance solutions that enhance societal resilience, especially in the wake of natural disasters and climate change.

Objectives of the Collaboration

The primary goal of this collaboration is to:

  • Equip financial institutions with advanced tools to assess climate risks.
  • Facilitate effective risk management strategies.
  • Enhance resilience against climate-related threats.

Key Tools and Technologies

As part of this partnership, both companies will leverage their unique technologies:

  • GeoSpatial Asset Intelligence by MSCI: An AI-driven tool that gathers data to identify and map physical risks associated with various assets, companies, and portfolios.
  • CatNet Tool by Swiss Re: This location intelligence resource offers detailed assessments of natural hazard exposure, utilizing maps and satellite imagery integrated with climate change data.

Benefits for Financial Institutions

This partnership will provide financial institutions with:

  • Asset-level insights into physical climate risks.
  • Comprehensive risk assessments that consider potential catastrophic events.
  • Enhanced strategies for risk mitigation across portfolios and loan books.

Commitment to a Resilient Future

Both MSCI and Swiss Re are dedicated to improving the financial sector’s capacity to anticipate and respond to climate-related risks. They stress the importance of integrating precise location-based intelligence and thorough natural catastrophe data to refine investment strategies and risk management practices.

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Expert Insights

Richard Mattison, Global Head of ESG and Climate at MSCI, remarked, “Our innovative collaboration with Swiss Re is a significant leap forward in advancing physical risk insights for financial institutions. By delivering precise, location-based intelligence, we empower clients to navigate the evolving risk landscape with confidence and build more resilient investment strategies.”

Ali Shahkarami, Global Head of P&C Solutions at Swiss Re, added, “We are committed to providing accurate data and best-in-class physical risk insights to the market. This cooperation will benefit financial institutions globally, aligning with our vision of making the world more resilient.”

This partnership marks a progressive step towards equipping financial entities with the tools necessary to face the challenges posed by climate change. For more information about MSCI, visit their official website here, and for insights on Swiss Re’s offerings, check out their site here.

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