AbsoluteClimo, a climate and weather modeling, forecasting and risk management firm based in Hawaii, has announced upgrades to its core service of climate catastrophe risk models and climate financial modelling tools.
The two products, G๏TCHA and Clim๏Cats, are financial models linked to global climate physics and machine learning predictions and for the first time AbsoluteClimo has also added a pandemic model based on climate-epidemiology.
Updates to the climate catastrophe models include the use of upgraded machine learning and artificial intelligence tools, wider tail risk probability forecasts, differential and departure forecasts, and a new global pandemic climate-epidemiology prediction model.
AbsoluteClimo has also enhanced its Clim๏Cats product to enable powerful new multiplicative factoring for near limitless in-house data customization.
The company wants to empower clients to “discover climate-driven risks and opportunities, resolve and reduce financial uncertainty, and gain (better) pricing optics and futures of their own financials, with consistent skill and forecast confidence for decision making.”
G๏TCHA is a global climate physics forecast model built from the ground up and includes earthquakes and volcanoes in addition to accounting for anthropogenic warming. Clim๏Cats are financial models linked to physical climate predictions.
Commenting on the upgrades Tim Yip, Executive Director at HSZ Group’s ILS Advisers in Hong Kong said, “We very much appreciate and value the different approach and view that AbsoluteClimo’s technologies are able to provide us against the traditional tools used in our industry. In a diverse, developing and active region like Asia especially, with varying degrees of questions on data and model confidence, being able to have an independent and different view is very valuable.”
“AbsoluteClimo has created the most forward reaching, consistent and accurate financial models linked to climate and cat exposures the world has seen,” added William Bloomstine, Senior Client Advisor at Insurance Management Company in Erie, Pennsylvania.
“AbsoluteClimo’s proven technology has disrupted a 70 year old paradigm exclusive to government and academic resources which the world grew dependent on,” commented Sudhir Ispahani CEO of Alpha Global Partners LLC and AbsoluteClimo advisor.
“AbsoluteClimo’s founders are successful serial entrepreneurs with decades of practice, providing a strategic advantage having learned from pioneering success at WeatherLabs, doubling down reinvestment into AbsoluteClimo’s R&D.“
Finally, Bob Mansfield Chairman of telecoms company Vocus Group in Sydney said, “Climate variability impacts to Australia and New Zealand have not been reliably predictable by the traditional suppliers. AbsoluteClimo’s leading technology provides climate-sensitive businesses in Australia with less talk about El Niños and more attention to what matters most: business revenue and the financial bottom line.”
AbsoluteClimo aims to help insurance, reinsurance and insurance-linked securities (ILS) market participants to operate their businesses based on a forward-looking view of climate-related risks, rather than reactively following the output of models that analyse historical data.
Given the technology used, these models are designed to accrue actual experience and knowledge over time, which is unique for a risk modelling tool and demonstrates where technologies such as machine learning can make a real difference to underwriters day jobs, ensuring they are always working on the latest data and insights.
Making decisions based on forward-looking, intelligence and machine learning-backed risk and financial models can help to transform insurance, reinsurance and ILS markets, enabling more informed decision-making for participants.