To better assist its customers in managing enterprise climate and environmental risks, Verisk Analytics has formed Verisk Climate. The new division, which is headquartered in Lexington, Massachusetts, will expand service to Verisk customers during high-impact events.
“[Our clients] in insurance, in government, and across the supply chain are increasingly voicing concern [about how] climate volatility and environmental extremes are [impacting] their operations and earnings,” explains Scott Stephenson, president and CEO at Verisk Analytics. “The climate division [will] introduce weather and environmental analytics [to] enable our clients to assess and plan for environmental impacts [while] implementing new strategies to differentiate and grow their businesses despite those impacts.”
According to Stephenson, integrated solutions leveraging the data and platforms of Verisk’s other operating units provide the means by which companies can enhance their resilience in the face of growing weather extremes. To his point, the new division will draw upon insights afforded by Verisk’s Atmospheric and Environmental Research (AER) unit. Kyle Beatty, the former senior vice president of AER, has been appointed president of Verisk Climate. In his previous role, Beatty was responsible for introducing products that translate the effects of climate into decision analytics for manufacturers, insurers, and commodities traders.
As a result of the expansion, AER will now operate as a unit of Verisk Climate under the leadership of AER President Ron Isaacs, with a continued focus on providing science-based services to government customers. When asked to distinguish between the aims (and relative benefits) of AER and Verisk Climate, Beatty had this to say:
“[The new division] is fundamentally different than a weather forecasting company," he explains. "The breadth of our scientific knowledge, our access to environmental big data, our ability to transform that data into decision analytics, and the integration we offer into clients’ workflows through Verisk software platforms allow us to effect change in unprecedented ways. Insurers using Verisk Climate analytics are increasing customer retention while meaningfully reducing expenses, and manufacturers are realizing significant competitive advantage while reducing corporate risk.”
Isaacs adds that AER remains committed to providing “world-class scientific research, development, and operational support to its government clients, including NOAA, NASA, and the Departments of Defense and Energy, and to its university and industry partners.”
“Verisk Climate will leverage AER’s more than 100 advanced-degree scientists and software engineers, global environmental data resources, and satellite remote-sensing expertise to innovate new products for all the markets our division serves,” he explains.
Beatty now reports to S. Ming Lee, group executive of Verisk Analytics and president and chief executive officer of AIR Worldwide. Verisk Climate’s focus on reducing risk in operational processes, such as mitigating environmental disruption across the supply chain or informing underwriting at the point of sale, will complement AIR’s focus on managing the risk of financial loss for insurers, reinsurers, brokers, and insurance-linked-securities investors. The independent operating units' research and development teams will work together on strategic initiatives that increase the range of analytical tools offered to current and new customer sets.
"Kyle's deep understanding of AIR Worldwide's natural disaster and weather risk models will serve as the catalyst for a new suite of derivative innovations targeted at supply chain executives and corporate risk managers," said Lee. "When combined with the scientific capabilities and data within AER, Verisk Climate will further extend Verisk's leadership position in risk-based analytics."
For more information about the newly formed Verisk Climate Division, visit www.veriskclimate.com.