Munich Re wins Standard Chartered as client for newly developed software solution for the assessment of climate risks
Risk Management Partners (RMP), a subsidiary of Munich Re (Group), has signed a multi-year Software-as-a-Service contract with Standard Chartered, one of the leading international banking groups. Standard Chartered will gain access to RMP's newly developed Location Risk Intelligence Platform. The modular software solution allows companies to analyse the risks of climate change for their assets or liabilities on a location-specific basis.
By entering location data, users of the software can evaluate the risks to be expected at the respective location in the form of risk scores for a variety of natural hazards or climate risks. The results enable customers to meet their increasing reporting requirements and to identify climate-related risk concentrations at an early stage. The evaluation of the corresponding climate risks is based on internationally applied scenarios for greenhouse gas emissions, the so-called Representative Concentration Path Scenarios (RCP).
The risk assessment is not based solely on past events, but especially on forecasts of the probabilities of future events likely to be caused by climate change. In this way, the present risk exposure of individual assets or asset portfolios can be assessed, as can any changes in exposure in the future. The software focuses in particular on the effects of climate change, such as extreme temperatures, extreme rainfall, drought, tropical cyclones, wildfires, floods, etc., with a time horizon up to 2100.
Beyond the concrete use of the Location Risk Intelligence Platform, Standard Chartered and Risk Management Partners also want to support each other in the further development of their respective risk models. The exchange of experience between two leading representatives of the banking sector and the insurance industry is intended to contribute in the medium term to better measurement of the financial effects of climate change on companies and balance sheets.
Mark Smith, Group Chief Risk Officer at Standard Chartered: “We are pleased to collaborate with Munich Re for climate-related physical risk assessments. Such exchange of knowledge and ideas between the banking and insurance sectors is a prime example of how industries can work together to combat climate change and financial risks arising from it.”
Torsten Jeworrek, Member of the Board of Management at Munich Re: ”By using our software, clients can significantly enhance their own risk management capabilities while benefiting from Munich Re's long-standing expertise in climate risk analysis. Our partnership with Standard Chartered demonstrates the added value that innovative risk management services can bring to the insurance industry and beyond in dealing with the effects of climate change.”
About Standard Chartered
Standard Chartered is a leading international banking group that operates in the world’s more dynamic markets. Our aim is to drive commerce and prosperity through our unique diversity and tradition. Our brand pledge “Here for good” reflects our heritage and our values. With over 86,000 employees and branch offices in 60 countries and regions of Europe, America, Asia, the Middle East and Africa, we service customers in almost 150 markets around the globe. Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges.
About Munich Re
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The Group consists of the reinsurance and ERGO business segments, as well as the asset manager MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake to the 2019 Pacific typhoon season. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies, cyber attacks or pandemics. The Group is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailormade solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.
This media release contains forward-looking statements that are based on current assumptions and forecasts of the management of Munich Re. Known and unknown risks, uncertainties and other factors could lead to material differences between the forwardlooking statements given here and the actual development, in particular the results, financial situation and performance of Munich Re. Munich Re assumes no liability to update these forward-looking statements or to conform them to future events or developments.