Swiss Re’s response
Commitment to the market
Swiss Re remains committed to its position as a leader in re/insuring against climate-related risks. Its risk transfer capacity is supported by the ability to place risks in the capital markets via the Alternative Capital Partners unit. Further, Swiss Re offers products that de-risk industries such as renewable energy, providing the risk transfer necessary for participants in these industries to access financing and pursue projects.
Consultation and engagement
As a global leader in the re/insurance industry, Swiss Re has a role in supporting other organisations in their efforts to reduce global warming and climate change.
To this end, Swiss Re is a member of the UN-convened Net-Zero Insurance Alliance and Net-Zero Asset Owner Alliance. In 2021, Swiss Re also joined the Taskforce on Nature-related Financial Disclosures to commit to better and more transparent reporting on nature-related risks.
Swiss Re’s underwriting for climate risks remains robust. The work is underpinned by its global Catastrophe Perils (Cat Perils) team, which comprises more than 50 experts. The team develops Swiss Re’s proprietary models for natural catastrophe risks worldwide. These models reflect current and evolving risk drivers such as climate change, urbanisation and various socio-economic trends.
The Cat Perils team provides more than 190 models across a range of perils, including key exposures such as tropical cyclones in Northern America, winter storms in Europe or earthquakes in Japan. Their work also covers emerging secondary perils such as river flooding in China or hailstorms in Europe.
Swiss Re’s models are an important steering tool for property natural catastrophe underwriting. They enable Swiss Re to benchmark business opportunities against profitability hurdles, to determine risk appetite and to assess the level of capital required to support the global property portfolio.
Swiss Re’s models ensure underwriters globally have the same knowledge basis, for assessing risks, whether they are underwriting risks for smaller clients in the US or working with a global broker in EMEA. This consistency builds confidence in both the accuracy of Swiss Re’s costing and the comparison of actual loss experience to modelled and expected losses.