Models & Analytics
The Best Model Depends on the Question
Weather risk is too broad for a single analytical methodology.
Different perils behave differently. Different industries experience weather differently. Different financial structures require different approaches to modeling exposure, frequency, severity, correlation, basis risk, pricing, and portfolio behavior.
The Weather Risk Economy therefore benefits from an open ecosystem of analytical expertise.
ClimateDelta is designed to incorporate proprietary models, third-party models, specialized analytical methods, and new capabilities as the science and market continue to evolve.
A modeling partner can extend what the platform understands without requiring ClimateDelta to recreate expertise that already exists elsewhere. Users can gain access to specialized capabilities inside the broader workflow in which the resulting analysis becomes actionable.
That connection is important.
A model has greatest economic value when its output can move naturally into a decision. Analysis can inform underwriting. Underwriting can inform pricing. Pricing can inform a product or program. The resulting risk can enter a portfolio where it can be monitored and managed.
ClimateDelta creates the environment through which that analytical chain can remain connected.
As the ecosystem of models expands, so does the range of questions the platform can answer.
A new model can open another peril. Another geography. Another industry. Another type of exposure.
Better models expand what the Weather Risk Economy can understand.