Howden Re has announced a new partnership with Reask, a company specializing in climate-driven modelling solutions. The collaboration aims to improve insurers’ ability to assess and manage the impact of emerging risks such as severe weather and subsidence in the UK and France.
Insurers across Europe have faced increasing losses linked to climate events. Recent years have seen heightened exposure to weather-related volatility, with higher retention levels making these impacts more significant. Notable examples include severe winter weather in the UK and Ireland in December 2022, as well as subsidence incidents in the UK and France during 2018 and 2022. These events have resulted in substantial loss ratios for personal lines carriers.
To address these challenges, Howden Re has developed a range of models focused on emerging perils in Europe. Through its partnership with Reask, Howden Re will integrate advanced climate data and subsidence modelling with local meteorological institute information. This approach is intended to provide a more accurate assessment of risk than traditional statistical methods.
The results from these models will also support Howden Re’s parametric and aggregate reinsurance offerings, helping clients secure protection against volatile risks and attract third-party capital into the market.
Jamie Rodney, CEO of Reask, said: “European cedents are seeking new ways to better price and respond to emerging perils for their clients. By combining our climate-driven modelling expertise with Howden Re’s innovative approach to emerging perils, we can deliver deeper insights into risks like subsidence and severe weather across Europe. This partnership is about equipping insurers with the forward-looking tools they need to manage volatility, protect earnings, and build long-term resilience for their clients.”
Tim Edwards, Head of International Analytics at Howden Re, stated: “These models enable our clients to benefit from innovative techniques that better reflect their true exposure. We already see that they can help attract new capacity to protect cedents against the volatility created by climate-driven weather and subsidence events. We look forward to partnering with Reask and continuing to bring innovative solutions to the market.”
The collaboration between Howden Re and Reask reflects a broader trend toward innovation in risk modelling as insurers seek better ways to navigate increased volatility due to climate change.