Climate risk is now firmly on the agenda of every boardroom. Yet the real challenge is not the availability of models, but the quality of the data that underpins them. When hazard layers or climate projections are inconsistent, decisions quickly go astray. Mispriced assets, rising credit risk, and unreliable disclosures are all direct consequences of poor data integrity.

The financial implications are substantial. In 2024, natural catastrophes caused global economic losses of US$320 billion, of which US$140 billion were insured. Munich Re also recorded 43 individual events that each resulted in losses of more than US$1 billion. These numbers illustrate why data quality is more than a technical detail. Accurate, reliable data is a strategic concern that can make or break financial stability.

This is where Munich Re’s long-standing expertise matters. Our NatCatSERVICE database, which has documented tens of thousands of catastrophe events since 1980, provides the empirical grounding needed to calibrate risk models. For Risk Management Partners, data builds the bridge that translates climate hazards into measurable financial consequences.

Location Risk Intelligence Platform brings a consistent, global framework to climate risk assessment. It harmonises peril definitions, time horizons, and methodologies, so that an exposure in California can be assessed on the same basis as an exposure in Germany or Spain. With modules such as the Climate Financial Impact Edition, Location Risk Intelligence goes further by expressing risk in terms that business leaders can act upon. 

For example, the 1-in-100 Year Intensity & Damage metrics reflect the hazard intensity and indicate the expected level of damage to an affected asset in a 1-in-100-year event. The Climate Expected Loss quantifies annual expected losses and is available for various projection periods up to 2100.

At the same time, regulation is reshaping the expectations for disclosure. In Europe, the Corporate Sustainability Reporting Directive (CSRD) and its associated standards require companies to provide consistent, transparent accounts of their physical climate risk exposures. In the United States, the SEC’s climate disclosure rule has stalled due to legal challenges. However, investor and state-level scrutiny ensure that transparency remains unavoidable. 

More than a compliance box to tick, disclosure is about maintaining investor trust and securing access to capital. Transparency depends on data integrity.

Getting the data right also opens the door to a stronger investment case for resilience. Analyses by the Global Commission on Adaptation and the World Bank consistently show that adaptation measures generate high returns, with benefit–cost ratios averaging around four to one. 

With accurate data, firms can pinpoint where those investments deliver the greatest value. Fortifying infrastructure, diversifying supply chains, or preparing for future disclosure requirements are opportunities that can generate returns.

The World Economic Forum continues to rank extreme weather as one of the most severe risks facing the global economy in the coming decade. This underlines the need for highly accurate, highly reliable climate risk data as a basis for risk modelling. If your inputs are flawed, your resilience strategy is compromised from the start.

At Risk Management Partners, we see data integrity as the first line of defence. We combine Munich Re’s comprehensive data and expertise with the harmonised analytics of Location Risk Intelligence. Using the platform’s data and analytics, organisations can foster resilience in a changing climate and remain successful in the long term.