Insurance brokerage Willis Towers Watson (WTW) has collaborated with climate analytics firm One Concern to expedite parametric insurance adoption.
The partnership will enable the broker to integrate the One Concern Resilience Score (1CRX) into its analytical platforms, helping clients gain more insight on dependency risk.
1CRX highlights a business’ vulnerability regarding downtime linked to infrastructure fragility, along with direct property damage.
This is said to offer a holistic view of the potential effect of vulnerable external dependencies as well as current building damage evaluation.
WTW global head of Risk Analytics Ben Fidlow said: “We are always looking for ways to help our clients thoroughly understand their risk profile, along with the opportunity for us to bring actionable insights and solutions to help them smartly reduce those risks; the ability to evaluate ‘the outside the fence’ risk dynamic is of critical importance, and now we can do something about it.
“One Concern’s investment in this area is quite impressive, and we are happy to deliver this new capability to our clients.”
The analytics firm claims that its technology will strengthen WTW clients’ risk analyses through advice on mitigation measures, pricing adjustments, and alternative risk transfer mechanisms.
All these will contribute towards improving a business’ resilience to natural calamities, and secure parametric insurance coverage to plug the gap.
One Concern co-founder and CEO Ahmad Wani said: “WTW’s ability to apply the latest in disaster science will enhance their clients’ decision-making process in choosing how best to integrate physical climate risk into their resilience strategy.”
The latest tie-up builds on WTW’s previous efforts to address climate risks, which includes the launch of its Climate Diagnostic global modelling tool last year.
In 2020, the brokerage bought climate change analytics firm Acclimatise.