Provides Climate Risk Profiles for Investment Portfolios
HARTFORD, Conn. & LONDON--(BUSINESS WIRE)--Conning, a leading provider of risk and capital management software and professional services to the financial industry, today announced the launch of a new Climate Risk Reporting and Scenario Service, equipping institutional investors with the tools and analytics needed to assess portfolio risk under a range of climate change stresses. The new modeling service responds to the increasing interest Conning has seen by insurers and pensions on the topic of environmental, social and governance (ESG) investing globally and the evolving ORSA, TCFD, IAIS and other frameworks for climate related risk management.
“While the need for companies to assess climate risk is clear, there has been little in the way of a well-defined methodology for taking climate risk modeling beyond simple deterministic stress testing until now,” said Matthew Lightwood, global product manager of Conning’s GEMS® Economic Scenario Generator software. “Our new Climate Risk Reporting and Scenario Service bridges this gap, combining robust stochastic economic modeling and climate change scenarios to provide insurers and pension plans with greater insights and richer narratives around their exposure to these risks,” added Lightwood.
The service produces a Climate Risk Report, powered by Conning’s award-winning1 GEMS® Economic Scenario Generator software, detailing the future evolution and risks to portfolio market values under a range of climate scenarios and stochastic economic projections. As an additional benefit, users of the service have access to the underlying scenario sets for use in their asset and liability modeling systems. In addition, Conning’s climate stress scenarios enable users to explore different pathways in terms of when and how transition and physical climate impacts may occur in the future.
“Climate change poses material risks for investment portfolios and the global economy as a whole, yet we have found that many institutional investors have struggled to measure these risks, mainly because of a lack of a reliable and standardized methodology,” said Woody Bradford, Conning’s CEO and Chair of the Board. “We are very proud that Conning is taking a leadership role in the industry by helping institutional investors evaluate climate-change-related investment risks.”
Conning (www.conning.com) is a leading investment management firm with approximately $188 billion in global assets under management as of September 30, 2020.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
*As of September 30, 2020, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited and Cathay Securities Investment Trust Co., Ltd. (“SITE”). SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning Holdings Limited controlled entities.
About Conning’s Risk Management Software
Conning’s risk management software platform includes GEMS® Economic Scenario Generator, FIRM® Portfolio Analyzer, ADVISE® Enterprise Risk Modeler, and Investment Analyzer, and provides deeper insights for decision making, regulatory and rating agency compliance, and capital allocation.
ADVISE®, FIRM®, and GEMS® are registered trademarks in the U.S. of Conning, Inc. Copyright 1990-2020 Conning, Inc. All rights reserved. ADVISE®, FIRM®, GEMS®, and Investment Analyzer are proprietary software published and owned by Conning, Inc.
NOTE TO THE EDITORS
- Samples of Conning’s Climate Risk Report outputs are available upon request.
- Economic scenario generators allow users to simulate future states of the global economy and financial markets, and this information can give insurers more confidence as they plan for their future reserves and capital needs. Conning’s tool uses advanced modeling and estimation technology to produce empirically validated, realistic economic behavior.
For more information about Conning's software, please contact:
Head of Risk Solutions, Conning
Office Phone: (860) 299-2403
+1 (860) 299-2278
+1 (646) 502-3548