Climate Strategy: Catastrophe & Weather Models

Travelers uses various analyses and methods, including proprietary and third-party modeling processes and geospatial analysis, to evaluate our climate-related risks and make underwriting, pricing and reinsurance decisions designed to manage the company’s exposure to catastrophe (CAT) events. The Catastrophe Risk Management group assesses CAT risk and manages the development of our strategic CAT efforts.

This group actively monitors and evaluates changes in third-party models and, when necessary, calibrates the CAT risk model estimates delivered via our proprietary modeling processes. We consider historical loss experience, recent events, underwriting practices, market share analyses, external scientific analysis and various other factors, including non-modeled losses, to refine our proprietary view of catastrophe risk. These analytical techniques are an integral component of our Enterprise Risk Management process and further support our long-term financial strategies and objectives.

Analytical techniques like these are an integral component of our Capital & Risk Management processes and further support our long-term financial strategies and objectives.

More about climate strategy

Approach

As a core part of our business, we continually monitor, assess and respond to the risks and opportunities posed by changing climate conditions to provide products and services that both help our customers mitigate associated risks and are priced to meet our long-term financial objectives.

Risk identification & management

Several groups and committees at Travelers are involved in identifying climate-related underwriting risks and climate-related opportunities in our book of business.

Underwriting strategy

For both property and casualty lines of business, we consider environmental factors, including weather trends and patterns, alongside other relevant risk variables in our underwriting evaluation process and in our underwriting strategies.

Products & services

As renewable energy businesses continue to innovate and expand, Travelers is playing a critical role in supporting the transition over time to a lower-carbon economy, both in the United States and internationally – specifically, through our insurance products and services designed for these innovative companies.

Resilient communities

As part of an ongoing effort to enhance public awareness about the need for effective adaptation strategies to reduce losses related to natural disasters, Travelers supports and participates in research, advocacy and education.