CGI collaborates with Munich Re';s Risk Management Partners to help insurers reduce claims and increase profits through climate risk mitigation
CGI (NYSE: GIB), a global leader in business and IT consulting, announced a partnership with Munich Re's Risk Management Partners to aid insurers in reducing claims and increasing profits through climate risk mitigation. This collaboration will merge Munich Re's Location Risk Intelligence Platform with CGI's climate risk services, helping insurers adapt to climate-related challenges within a complex regulatory landscape. The partnership aims to enhance insurers' risk management by providing rich decision support data, enabling better pricing, risk concentration identification, and performance metrics. Ultimately, the initiative seeks to bolster a sustainable, resilient, and profitable insurance industry.
- CGI's partnership with Munich Re could lead to reduced claims and increased profitability for insurers.
- The collaboration provides insurers with advanced decision support data for better risk management.
- CGI's expertise can help insurers improve customer experience and competitiveness through customized climate risk reports.
- Insurers face increasing claims and regulatory challenges due to climate-related risks.
Insights
The collaboration between CGI and Munich Re has significant potential for improving profitability in the insurance sector. By leveraging Munich Re's Location Risk Intelligence Platform, insurers can better align their pricing adaptations with claims experience, which is important for maintaining profitability in a climate-challenged environment. Accurate pricing based on granular location assessments can significantly reduce the risk of under-pricing policies, which is a pervasive issue due to the increasing frequency and severity of natural disasters. Moreover, access to detailed climate impact models and measurements allows insurers to set more accurate reserves, improving the financial stability of their operations. Long-term, this partnership may lead to an enhanced competitive edge for insurers who adopt these advanced risk management practices.
The integration of CGI's climate risk mitigation offerings with Munich Re's platform presents a comprehensive approach to dealing with climate-related challenges in the insurance industry. Climate Risk Mitigation is not just about averting immediate losses but also about strategic planning for long-term sustainability. The emphasis on risk mitigations related to natural hazards can help insurers not only reduce claims but also improve their overall resilience. Insurers that proactively manage climate risks can avoid the pitfalls of regulatory non-compliance and can even gain from potential incentives or subsidies aimed at fostering sustainability. However, the success of such a partnership will largely depend on the adaptability of insurers to integrate these advanced analytics into their existing frameworks.
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This partnership will combine Munich Re's Location Risk Intelligence Platform with CGI's climate risk mitigation offerings to help insurers minimize the impact of climate change on their business models and profitability. Faced with increasing claims, insurers must deal with climate-related risks and challenges, all within an ever-changing and complex regulatory framework.
"CGI has developed a broad range of offerings focused on monitoring and helping insurers anticipate and address the impacts of climate change, from assessing risks and damage from natural events to implementing practical strategies that turn potential risks into strategic advantage," said Benoit Leboucher, Senior Vice-President Consulting Services at CGI. "This collaboration will contribute to a more sustainable, resilient and profitable insurance industry, notably as we help insurers manage, measure and create visibility on the outcomes of their initiatives."
Through the partnership, insurers can access rich decision support data to advance their risk management policies and practices, enabling better decision-making, such as:
- Pricing adaptations that are more closely aligned to the claims experience;
- Identification of main risk concentrations based on granular location assessments;
- Key performance indicators for each customer based on climate impact models and measurements; and
- Risk mitigations related to natural hazards and climate change across the globe.
"We are delighted to join forces with CGI in helping insurers address increasing climate risks," said Christof Reinert, Head of Risk Management Partners at Munich Re. "Climate change and the need to drive forward sustainability actions will continue to grow in importance, and insurers are looking for proven expertise and innovative solutions to respond to these trends. Our combined offering will deliver the comprehensive climate risk mitigation capabilities insurers need."
CGI will also manage the delivery of Munich Re's Location Risk Intelligence solution to insurers, covering every stage of implementation—from needs analysis to change management.
Overall, with the industry and technology expertise and the consulting support of CGI as part of the combined offering, insurers will integrate climate impact into their risk management and decision-making, spend less time and effort collecting climate risk data from multiple sources, produce ready-to-use and customizable climate risk reports, and improve their customer experience and competitiveness.
About CGI's Sustainability and ESG Advisory services
CGI's portfolio of proven Sustainability & ESG Advisory services enables clients to advance and balance collective sustainability and financial growth. The company's proven design, engineering and operating experience for critical enterprise solutions, along with a deep understanding of industries, ecosystems, supply chains and global interconnectedness helps clients map the way forward with confidence, embedding sustainability into their operations and realizing long-term business value. For the insurance industry, CGI's sustainability and climate risk mitigation offerings focus on prevention, data management and change management practices, helping both insurers and their customers prevent and mitigate risk.
About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 90,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2023 reported revenue is CA
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SOURCE CGI Inc.
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