S&P Global, Verisk launch auditable climate benchmark linking catastrophe models to insured losses

New climate benchmark links catastrophe models to insured losses

S&P Global Energy and Verisk announce a data‑sharing collaboration that creates a new industry benchmark for climate risk intelligence, combining their differentiated datasets to quantify insured and uninsured financial impacts of future climate and near‑term catastrophe events. The agreement integrates Verisk’s physically based, near‑present catastrophe risk data into S&P Global Sustainable1’s Climanomics physical climate risk platform, while S&P Global’s climate‑adjusted inland flood layers feed into Verisk’s event simulations and Touchstone® catastrophe model. The partnership models forward‑looking events through 2050 and delivers auditable, exposure‑level metrics intended to be used by insurers, banks, asset managers and real estate investors.

By fusing catastrophe modelling, insurer claims data and climate‑adjusted geospatial flood layers, the collaboration aims to close gaps highlighted by regulators and central banks in recent stress tests and regulatory reviews. The teams emphasise an auditable, replicable methodology to support insurance underwriting, reserve planning, portfolio stress testing and regulatory reporting, enabling users to separate insured from uninsured losses with finer granularity. The integrated product is designed to update as climate science advances, combining remote sensing, hydrological modelling and claims datasets to increase confidence in forward‑looking loss estimates and to accelerate capital and insurance capacity allocation decisions.

Market participants and supervisors benefit from the shared analytical foundation the partners seek to provide, which supports risk‑adjusted pricing, scenario analysis and compliance workflows. The collaboration is framed as a response to record‑setting natural hazard losses in recent years, aiming to supply a consistent, verifiable set of future‑projected climate events that firms can use for stress testing, solvency assessments and disclosure practices across jurisdictions.

Liquidity outlook highlights private credit, tech issuance and NBFI leverage

S&P Global Ratings publishes its “Liquidity Outlook 2026: Six Questions, Six Answers,” warning that private credit is surging as a key funding source for lower‑rated borrowers facing heavy refinancing needs through 2028. The report flags higher leverage at nonbank financial institutions, booming tech‑sector issuance tied to AI and large hyperscaler capex, and the potential for market strains if transparency and short‑term funding risks persist.

Regulatory focus and implications for financial firms

Analysts note policymakers and market participants will watch U.S. bank capital and stablecoin regulation developments and the Federal Reserve’s likely measured rate moves. S&P Global’s new climate risk offering positions the company to support clients’ regulatory reporting and bank stress‑testing needs as authorities increasingly demand auditable, forward‑looking climate metrics.