Story perspectives

Experts Warn: Revamp Risk Models for Climate Challenges

6/28/2025

46 9

Summary

Story summary

Schroders' ILS experts are sounding the alarm on the urgent need for revamped risk assessments in the insurance-linked securities market, driven by the stark realities of climate change. They stress the growing gap between outdated catastrophe models and today's climate challenges, urging investors to weave scientific data into their risk strategies. With secondary perils now significantly affecting insured losses, a fresh approach to risk pricing and portfolio construction is essential.

1 of 1

Story summary

Schroders' ILS experts are sounding the alarm on the urgent need for revamped risk assessments in the insurance-linked securities market, driven by the stark realities of climate change. They stress the growing gap between outdated catastrophe models and today's climate challenges, urging investors to weave scientific data into their risk strategies. With secondary perils now significantly affecting insured losses, a fresh approach to risk pricing and portfolio construction is essential.