The Challenge
A German reinsurer needed to quantify climate transition and physical risk across its €4B property CAT portfolio. Regulatory pressure (EIOPA, BaFin) and investor demands required sophisticated climate scenario analysis that traditional CAT models didn't provide.
The Solution
Deployed Climate Risk Agent to analyze portfolio exposure to physical hazards (flood, wildfire, heat stress) and transition risks (carbon pricing, stranded assets). The system integrates IPCC scenarios, climate projections, and asset-level vulnerability data.
Implementation
Mapped entire property CAT portfolio to climate hazard zones using IPCC RCP scenarios. Analyzed flood, wildfire, windstorm, and heat stress exposure at asset level.
Assessed transition risk across industrial and commercial property exposures. Modeled carbon pricing impact, regulatory changes, and technology disruption.
Integrated climate scenarios into capital modeling and strategic planning. Created executive dashboards for EIOPA ORSA reporting and investor disclosure.
Results
Quantified €240M in climate-related Value at Risk across portfolio
Reallocated €180M in capacity away from highest climate-risk exposures
Met EIOPA climate stress test and BaFin sustainability requirements
Achieved full TCFD compliance with detailed scenario disclosure
"Climate risk is no longer abstract. We now have quantified exposures informing every underwriting and capital decision."