We are pleased to announce that Finnish insurance group Fennia, has selected the Moody’s Climate Pathways solution to embed climate risk in their own risk and solvency Assessment  (ORSA) and strategic asset allocation (SAA) exercises.

Fennia is a long-established mutual business offering insurance, risk management, savings, and services. They are already extensive users of the Moody’s Scenario Generator for actuarial liability valuations, risk management, SAA, and asset and liability management; we are delighted that they have chosen Moody’s for this important addition to their processes.

Fennia also takes advantage of the Moody’s Scenario Generator Automation Module, which allows insurers to streamline their modeling processes by automating model set-up, execution, and validation, in turn reducing production time and cost.

As a Climate Pathways solution customer, Fennia now also benefit from  stochastic climate-aligned scenarios for a range of temperature pathways to help assess transition and physical risk exposure. Fennia will also leverage Moody’s capabilities for sector modeling to measure the impact on returns on equity and credit assets in different sectors. 

Timo Salminen, Head of Capital Management at Fennia said: “Evaluating the effect of climate scenarios to financial markets is essential for our long-term investment planning. Moody’s Climate Pathways gives us the opportunity to enhance our allocation planning processes to incorporate the financial impact of climate on our business, and communicate it clearly to the board”.

Moody’s Climate Pathways solution helps insurers quantify the financial impact of physical and transition risk. It is built on a unique combination of many years of robust insurance knowledge, scenario expertise, and climate science experience. Our solution offers insurers the necessary rigor and flexibility to confidently generate actionable insights and gradually progress their level of climate modeling sophistication, to adapt quickly to future regulatory evolutions.