Verisk Partners with RiskSpan for Climate Change Solution
Verisk has partnered with mortgage analytics firm RiskSpan to create a solution to measure and mitigate climate change risks for the housing finance industry.
The collaboration will enable RiskSpan’s Edge platform for mortgage analysis and Verisk Extreme Event Solutions’ proven model set to assess the risk of natural and weather-related disasters at a given location by providing a metric of property-specific hazard risk.
Janet Jozwik, managing director responsible for RiskSpan’s contribution to the new partnership, said, “Verisk’s fundamental approach to property-specific risk analysis is the perfect complement to our loan-level approach to modeling mortgage credit and prepayment.
“We are excited to integrate Verisk’s unique real estate risk rating into our existing credit and portfolio risk framework.”
“Our collaboration with RiskSpan will greatly benefit the housing finance industry by adding data and critical analytics of Verisk’s catastrophe models during the loan selection process,” noted Roger Grenier, Senior Vice President of Practice at Verisk’s global resilience.
“This added layer of portfolio management can help banks and financial institutions better understand the potential risk of extreme weather events for a given property.”
The risk of extreme events for the housing finance industry is significant. According to Verisk, 62 million residential locations are at moderate to extreme flood risk.
Bernadette Kogler, Managing Director of RiskSpan, said, “We are excited to bring Verisk’s powerful climate risk and hazard analysis to our clients.
“This alliance opens the door to a world of property-level data from the insurance industry that can have tremendous value for mortgage applications.”
Bill Churney, president of Verisk’s Extreme Event Solutions unit, added, “The collaborative solution will bring together the best extreme event models, weather data and analytics for the mortgage finance industry.
“With financial institutions facing increased pressure to factor climate risk into their decision-making, we expect RiskSpan’s enhanced tools powered by Verisk to be a welcome addition to their risk management process.”