Climate change not only leads to more frequent natural catastrophes and more expensive losses; it can also disrupt entire production processes and results in many new regulations that challenge companies. In some cases, companies have to adapt their production processes or supply chains and manage them dynamically so as to be able to respond flexibly to changing conditions.
To support companies in mastering the challenges relating to climate change, Zurich established "Zurich Resilience Solutions" in 2020. The new business unit was created to help companies to prepare their risk management for a rapidly changing risk landscape and to develop resilience using a new, holistic approach.
Its consulting services make for an attractive package alongside classic insurance cover. After all, climate change is altering the insurance market too. As weather events in particular are becoming more extreme, there is a tendency for the cost of losses to rise. This, in turn, means that insurance cover is becoming more expensive. If companies succeed in minimizing the risks of their locations and supply chains through clever measures, they can reduce the cost of the cover they need.
Both businesses and insurers profit from the interplay of resilience and insurance benefit. To be able to ensure sustainable risk management, companies are often reliant on large quantities of relevant and reliable data.
However, frequently this is lacking. Zurich Resilience Solutions can provide such data and interpret it, thanks to its own risk engineers' decades of experience; it also has the necessary tools to evaluate data and achieve crucial insights.
In many countries and regions, new regulations are currently being developed that result in a number of new conditions and responsibilities for companies. They either have a direct effect on production or on the way in which climate risks have to be mapped in sophisticated reports in the future. Zurich Resilience Solutions can provide further assistance here.
Our extensive industry knowledge, our own analyses and our access to a unique data pool form the basis. They enable Zurich Resilience Solutions to offer valuable insights into specific problems and to develop suitable solutions according to customers' exact requirements.
Urs Lüthy, Head of Commercial Insurance Zurich Switzerland