Case Study: ECA Vaud strengthens climate-risk and tariff planning with Moody’s Analytics

Preparing for a riskier future conducting detailed, climate-focused portfolio and location analyses

ECA Vaud, a public insurance body for the canton of Vaud, Switzerland, faced the challenge of preparing for climate change risks and ensuring its insurance tariffs were both accurate and affordable. Their goal was to conduct a detailed risk analysis of their portfolio of over 200,000 properties for perils like flood and windstorm, both for the present day and future climate scenarios. To meet this challenge, they engaged Moody’s Analytics and its Moody’s RMS Analytical Services team, utilizing climate change models and location-level hazard data.

Moody’s Analytics implemented a solution using its Europe Windstorm, Inland Flood, and Severe Convective Storm models to perform portfolio and location-level analyses. The results provided ECA Vaud with granular average annual loss data and hazard scores, which were directly integrated into their tariff calculation and GIS systems. This empowered them to set current insurance rates based on precise risk data, model future rate predictions up to 2055, and optimize their risk capital requirements, leading to such satisfaction that they are now promoting this approach to other Swiss cantons.

ECA Vaud