How climate risks are impacting real estate insurance costs

“Traditional catastrophe models train on historical data, but forward-looking models forecast use climate models using evolving non-stationary trends over time, improving accuracy in assessing asset risk and pricing insurance products. These models also provide a climate-adjusted value, incorporating future risks into asset valuations, which is becoming crucial for banks and investors,” says Wahib Ghazni, Senior Product Manager and Lead Financial Economist at Jupiter Intelligence.