Pioneering the pricing of climate risk into financial markets and insurance
The 2-D Deception:
While a staggering 95% of F500 facilities don't lie in designated flood zones, an overwhelming 98% are vulnerable to cash-flow disruptions from nearby infrastructure breakdowns — well before their own premises are directly affected. That's right — they'll bleed money before a drop of water touches their doorstep.
Metrics That Miss the Mark:
It's high time we debunked the myth: being located in a 100-year or 500-year flood zone is a flawed and superficial metric. It's a smokescreen that distracts from the real cash-flow landmines lurking in the next 3-5 years.
AI-Enhanced Multi-Dimensional Twin:
One Concern harnesses the prowess of AI to venture beyond, crafting a meticulous digital twin that captures every iota of the world's physical infrastructure and its intricate web of interconnections. Our multi-dimensional graph offers a panorama of risks, not just a snapshot.
A Language Everyone Understands:
Time: Complexity? Simplified. While risks originate from a staggering million sources per physical location in the US, from each electric pole to every highway segment, One Concern distills it down to a universal metric - 'time'. Understand the ripple effect, how disruptions spread to the facility itself. This is the language businesses grasp: the tangible financial implications. Consider a bagel shop owner; knowing their power might be out for 5 days annually is infinitely more actionable than the vague notion of a "500-year flood zone."
Ditch the status quo. With One Concern, get through the maze of risks and understand the true financial undercurrents. One Concern’s analytics provide an entity-level view with resilience scores capturing impacts from business interruption. The integration of our downtime metric into ESG data products ensures that every security in the market, whether traditional or emerging, is priced with a precision that reflects our changing world. With One Concern, financial decision-making is not just informed but profoundly foresightful.
Now where does this lead? Directly to the repricing of financial securities. One Concern's approach permits an in-depth look at how climate risk influences the value of diverse securities:
Equities: Adjusting company valuations based on predicted operational downtimes and associated costs from climate events.
Bonds: Evaluating the creditworthiness of issuers with an added layer of climate risk, potentially impacting yield rates and bond prices.
Derivatives: Reassessing the underlying value and associated contracts in light of predicted climate disruptions.
Mortgages: Adjusting property values and associated loan risks due to localized climate threats.
Business Interruption Insurance Policies: Reframing premium structures based on a more precise evaluation of climate risks to insured assets.
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