CoreLogic forges strategic partnership with global reinsurer to boost climate risk modelling

  • By Christine St Anne

CoreLogic has forged a partnership with global reinsurance business Munich Re to provide a service that will allow mortgage brokers, real estate agents and front-line lenders assess the impact of climate change on properties 

Under the joint venture, Munich Re’s climate analytical insights will be applied to CoreLogic’s comprehensive property data coverage that connects to its banking, valuation, insurance, and real estate systems.

Both businesses will be developing consumer research services that will allow real estate professionals, mortgage brokers and front-line lenders to help homeowners understand the potential exposure of specific properties to natural disasters.

It is an area that has been a focus for CoreLogic as it has earlier signalled that climate change as a risk was already manifesting itself in the property market

Academics and industry have also recognised the crucial role data can play in addressing climate risks

“Climate related risks present real challenges to many industries,” CoreLogic International CEO Lisa Claes said. 

“By marrying together the science that powers Munich Re natural catastrophe modelling with robust CoreLogic property data and analytics, our clients will be better positioned to make informed decisions to manage risks presented by the myriad of weather-related natural disaster events,” Claes said.

“We are thrilled to be partnering with an organisation the calibre of Munich Re to provide climate risk analysis solutions that will help prepare Australia and New Zealand for future climate change impacts.”

Supporting financial services 

The first area of focus will be to support the financial services sector in understanding their exposure to climate related risks, conducting home loan portfolio stress testing scenarios and supporting the origination strategies for new home loan applications. 

This focus will be supported with a management reporting and geospatial capability that can empower board reporting and internal research to set appropriate corporate climate change response plans.

CoreLogic general manager of financial services Milena Malev – who was newishly hired to oversee the climate risk remit – said businesses in the financial sector are already scrutinising their exposure to better understand and quantify the potential physical impacts of climate-related issues.

In fact, it was only recently the Climate Measurement Standards Initiative announced a set of voluntary guidelines for banks and insurers to assess the risk and disclosure the financial impact of climate-related risks. 

The CoreLogic/Munich Re tie-up will assist in a better understanding of the risks in the property market. 

“I am excited that our customers will be able to leverage CoreLogic property data insights, enhanced by Munich Re expertise in catastrophe modelling, to better understand and manage climate related financial risks,” she said.