Argo Group recognizes the impact of climate change on the global community, and that is why we consider climate change in both our modeling of risk exposure and our underwriting decisions. We have developed our own view of risk, which is used to make underwriting and management decisions. It is based on a combination of third-party vendor models, plus our proprietary adjustments.
We further demonstrate our commitment to addressing climate change issues through our active membership in ClimateWise, a global insurance industry leadership group facilitated by the University of Cambridge Institute for Sustainability Leadership. As part of our membership, we endeavor to adhere to the ClimateWise Principles, which guide members’ contributions to the transition to a low-carbon, climate-resilient economy.
We produce an annual ClimateWise report. In 2020 we decided to publicly disclose our 2019 commitments in juxtaposition with the Principles, and this further reinforces our pledge to use enhanced reporting. This is in sync with the transparency of the Task Force on Climate-related Financial Disclosures (TCFD), with which the ClimateWise Principles have been fully aligned.
Argo Group has organized external events to raise awareness within the insurance market of various third-party models to foster understanding of the assumptions and the risk-estimation process and, specifically, their application in the context of climate risk and climate change. Comparing external data along with our own in the validation process further enhances our understanding of how to perform effective verifications.