Business and IT consulting services firm CGI has teamed up with Risk Management Partners, a unit of reinsurer Munich Re, to support insurers in reducing claims, boosting profits, and driving long-term value through climate risk mitigation.

Through the collaboration, CGI aims to combine its climate risk mitigation offerings with Munich Re’s location risk intelligence platform. This will allow insurers to lower the impact of climate change on their business models and profitability.

The partnership will also enable insurers to access robust decision support data to advance their risk management policies and practices.

They will also be able to improve decision-making including pricing adjustments that are in line with claims experience and identifying primary risk concentrations through detailed location assessments.

Besides, the alliance will offer important performance indicators based on climate impact models and measurements for each customer.

The partnership will also facilitate risk mitigations related to natural hazards and climate change across the world.

Munich Re Risk Management Partners head Christof Reinert said: “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 be responsible for the delivery of Munich Re’s location risk intelligence solution to insurers, ensuring comprehensive management across all stages, from initial needs analysis to change management.

Insurers are expected to integrate climate impact into their risk management and decision-making, spend less time and effort collecting climate risk data from multiple sources.

They will also produce ready-to-use and customisable climate risk reports as well as improve their customer experience and competitiveness.

CGI consulting services senior vice-president Benoit Leboucher said: “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.

“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.”