How to calculate and reduce the climate risk

Olivia Utharntharm

Aug 4, 2022

1

min read

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The world is beginning to experience the forecasted risks and challenges of the climate crisis play out across the globe. We chatted to Nick Hassam, CCO of Reask and partner of our 2022 Climate Tech Industry Report, about the importance of adapting to and mitigating the effects of climate change to protect lives, ecosystems and assets.

"In 2021, the total economic cost of natural catastrophe events across the world was estimated at $250bn, of which only $105bn was insured (The difference between these two reference points is commonly referred to as the “protection gap” – the cost of climate risk incurred by society.

As the climate continues to change, our understanding of how extreme climate phenomena such as tropical cyclones, floods and wildfires evolves too, bringing greater uncertainty and increasing the financial burden from climate risk on all of humanity.

Reask build climate risk models using machine learning, global climate data and high-performance computing. Our solutions are used by insurance organisations, governments, and financial institutions across the globe to better understand their exposure to the extremes of climate risk. Through the development of our products, Reask are helping to close the protection gap and build greater financial resilience to those adversely impacted by an evolving climate.

Reask’s methodology is unique, employing the latest science, novel technologies, and emerging sources of information to create climate conditioned models that inform and quantify risk for our client base. Our approach enables the physical connections between global climate models and extreme phenomena to be made, delivering insight into the future impact of climate change."

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