WTW Partners with Cornell University to Address Global Drought Risks
WTW, a prominent global advisory, broking, and solutions firm, has announced a strategic partnership with Cornell University to conduct a comprehensive analysis of the risks associated with severe and prolonged droughts worldwide. This collaboration aims to enhance the understanding of global vulnerability to drought and to investigate the potential ramifications of water scarcity on business operations across various sectors.
Currently, approximately two-thirds of the global population resides in regions that experience water stress at different times throughout the year. When drought conditions intensify existing water shortages, communities often face significant declines in agricultural output, energy production, and overall economic performance. The adverse effects of drought are particularly pronounced in low- and middle-income countries, especially those heavily reliant on agriculture for their economic stability.
Although climate change has already heightened the frequency and severity of droughts in many areas, even the most recent climate models struggle to accurately predict the intensity, duration, and interconnections among future drought events. Through this partnership, WTW and Cornell University are committed to identifying regions most vulnerable to climate-induced drought, refining drought risk assessments, and developing innovative tools and datasets to forecast both short-term and long-term drought scenarios.
Cornell’s research efforts are bolstered by the Atkinson Center for Sustainability and are guided by Professor Toby Ault, a respected authority on the impacts of climate change on drought patterns. Scott St. George, the Head of Weather & Climate Research for the WTW Research Network, emphasized the critical nature of this initiative: “Water is vital to all industries, and no organization can afford to be caught off guard by drought conditions. Climate change has already intensified drought occurrences in certain areas, as evidenced by the ongoing drought in the American Southwest, which has persisted for over three decades. Professor Ault and his team at Cornell will provide indispensable insights into the genuine risks of drought and water scarcity. Such knowledge is crucial for our clients involved in water-dependent sectors like food and beverage, energy production, and waterborne transport.”
Professor Ault expressed enthusiasm for the collaboration, stating, “We’re thrilled to partner with WTW in translating advanced climate science into practical insights for the insurance industry. Our research has indicated that conventional climate models frequently underestimate the risks associated with severe, prolonged droughts, particularly in areas already grappling with water scarcity. By merging our expertise in drought modeling with WTW’s industry insights, we can better equip ourselves to tackle the complex drought risks that lie ahead.”
Source: Reinsurance News
