March 14, 2022

Climate resilience, delivered by Demex

Don't gamble on the weather

Mike Anderson, Head of Growth

Climate Change is the New Normal

In 2021, the Washington Post found that over 40 percent of Americans lived in a county impacted by extreme weather. In the last 50 years, the number of weather disasters has increased by five-fold.

We are already observing the impacts of climate change. The character of extreme weather events such as heatwaves, extreme cold spells, flooding rain, blizzards, droughts, and wildfires are changing. Thanks to climate change, the past is not a prologue for future extreme weather events. Business planning should account for forward-looking assessments of extreme weather instead of relying on their experience of past events.

Impacts from climate change will vary dramatically from place to place around the globe. It’s not one-size-fits-all. Impacts will be highly localized. Business planning must account for their specific geographic footprint. Climate Report is a Wakeup Call for Business Leaders

Climate change is transforming ordinary weather and creating extraordinary issues and new impacts on your climate-linked economics.

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Extreme Weather, Extreme Costs

With extreme weather comes new and increasing costs. In 2021, there were 20 events with total costs over $1-Billion. 14 of those events cost between $1-Billion and $2.5-Billion each. At Demex, we call these extraordinary weather events “Kits” to distinguish them from larger natural catastrophes (aka “Cats”) which cost over $2.5-Billion each.

from: Insurance Gaps in Climate Resilience

In the entire decade of the 1980’s there were 29 events costing over $1 Billion each. In the 2010’s there were 123 and, in 2020 coupled with 2021, we’ve already observed 42.

Because of increasingly volatile weather, ESG+R programs are no longer optional. Effective climate risk management is a requirement.

More and more companies are examining their exposure to climate-related risks. Credit rating agencies, government regulators, investors, and the Task Force on Climate-related Financial Disclosures (TCFD) are all directing companies to understand and manage their Climate Linked Economics. Business leaders, investors, and regulators are demanding increased transparency on climate impacts.

The Securities and Exchange Commission (“Commission”) is proposing for public comment amendments to its rules under the Securities Act of 1933 (“Securities Act”) and Securities Exchange Act of 1934 (“Exchange Act”) that would require registrants to provide certain climate-related information in their registration statements and annual reports. The proposed rules would require information about a registrant’s climate-related risks that are reasonably likely to have a material impact on its business, results of operations, or financial condition. Under the proposed rules, certain climate-related financial metrics would be required in a registrant’s audited financial statements. Specifically, we are proposing that impacts on any relevant line item in the registrant’s consolidated financial statements during the fiscal years presented arising from severe weather events…


Delivering Climate Resilience

Our team is the first to develop a comprehensive approach to climate risk management. We’ve brought together decades of experience across tech, finance, risk management, capital markets, insurance, and climate science.

We instantly crunch millions of weather time series to assess every point around the world. We integrate big data and scalable analytics to develop actionable climate risk management across an unlimited offering of financial instruments globally.

We don’t just assess risk, we help you manage it.

  1. Model: Our machine learning platform creates detailed views of weather exposures across your portfolio
  2. Assess: Using your relevant financial data, Demex shows you the financial impact of climate extremes on your portfolio
  3. Manage: The Demex approach relies on a foundation of market risk pricing at every stage of your portfolio evaluation

1. Model: Your Portfolio Weather Exposure

Our machine learning platform creates detailed views of weather exposure at every location across your portfolio:

  • We create parametric models for every element of your portfolio, calibrated to your individualized data
  • We use market-based risk pricing to quantify the financial impact of weather variability
  • We identify portfolio components where weather risk poses risk to asset value and operating income

2. Assess: Your Climate Linked Economics

Using your relevant financial data, Demex shows you the financial impact of climate extremes on your portfolio.

  • We measure the changing climate at every element of your portfolio
  • We appraise the baseline impact of extreme weather events on your portfolio over history
  • We appraise your Climate Risk between the baseline impacts and impacts that include climate change

3. Manage: Your Resilient Portfolio

The Demex approach relies on a foundation of market risk pricing at every stage of your portfolio Appraisal:

  • We integrate parametric solutions throughout the process, from modeling to assessment to management
  • We create market-based risk transfer solutions calibrated directly to your portfolio data and unique weather exposures
  • We deliver effective mitigation strategies balancing the cost of unhedged weather risks against the benefit of risk management

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Climate Risk Appraisals from Demex directly address future business performance. Lenders appraise climate-driven shifts for risk of borrower defaults. Business owners appraise climate-driven shifts in costs and revenue. Investors appraise climate-driven shifts in projected returns across their portfolios. Appraisals form a pathway toward Demex derived parametric insurance and climate hedging for complete financial solutions. Learn about Demex Climate Appraisals

Demex developed new insurance options to protect policyholders following extreme weather. These solutions are parametric, meaning that claims and payments are automatic. Demex technology also directly integrates with insurance carriers who are developing and deploying new weather insurance. Learn about Demex Extreme Weather Insurance

Demex snow solutions for property managers drive comprehensive budget planning. We custom-fit winter weather management solutions that account for hyper-local snowfall patterns across your portfolio as well as the unique cost profile at each property. Our customers save 10-40% on snow removal costs. Learn about Demex Snow Solutions


In the News

Washington Post: D.C. firm aims to be ‘shock absorber’ for businesses coping with extreme weather and climate change

CBS News: Impact of climate change and extreme weather events on global economy

Bloomberg’s Balance of Power: Heat Waves and Climate Resilience for Business

Axios: Hedging against extreme weather events

Bloomberg Radio: Extreme Weather and Insurance Innovation

Artemis: Demex democratizes access to climate data useful for risk transfer

Property Casualty 360: Insurance regulators, insurtechs team up on climate resilience

Insurance Edge: Predicting Weather and Managing Climate Risk

Reinsurance News: Insurtechs Demex & Vave target US for commercial extreme temp cover

Artemis: Demex launches Appraisals as pathway to parametric climate hedging

Cheddar Climate: Climate Change Is Happening – Breaking Down the New UN Report

Insurance Journal: Demex and Vave Offer Parametric Extreme Temperature Insurance for U.S. Businesses

Bloomberg Radio Balance of Power: UN’s Stark Climate Warning

Forbes: How To Prepare For The Next Weather-Related Crisis

Axios: Prominent investors jump into the climate risk space

Insurance Journal: Investors Back Startups for Commercial Auto, Climate Risk, High Risk Homes

Cheddar TV: Extreme Weather and Business Resilience

Fox Business: Recent weather trends can put your business on the hook and mean a difference between seeing red or black in the bottom line.

Cheddar News: How Climate Change-Fueled Heat Waves Impact U.S. Economy

 

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