Aon renews climate risk research partnership with Columbia University

Aon has renewed its academic partnership with Columbia University until 2027 to include research on the correlation of climate risk across various perils and regions.

This renewal follows a successful first phase, where Columbia’s latest peer-reviewed climate science was integrated into Aon’s Impact Forecasting tropical cyclone catastrophe model suite. Consequently, this year’s release of Impact Forecasting’s Hurricane Model v3.0 incorporates additional climate change perspectives in every stochastic run.

In the second phase of this collaboration, it will continue to explore the effects of climate model biases on future tropical cyclone risks. For example, Columbia’s research has shown that recent climate model simulations predict excessive warming in the eastern Pacific Ocean due to greenhouse gases.

This suggests that these models may overestimate cyclone activity in the Pacific and underestimate it in the Atlantic. The upcoming research aims to refine and quantify these uncertainties using improved climate model projections to better understand tropical cyclone risks and projected losses in Aon’s Impact Forecasting model.

Patrick Kelly, Head of Climate Analytics for North America at Aon, stated, “Climate risk across geographies and perils is interconnected, and represents a significant area of uncertainty for the re/insurance industry.

“Aon and Columbia will continue to work together to understand how global climate factors influence multi-peril and multi-region losses. This research will help global organisations navigate volatility, build resilience and ultimately shape better business decisions.”

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