Having won InsuranceERM's climate stress-testing solution of the year in 2023, Conning's Climate Risk Analyzer is the standout winner of this year's climate risk analytics solution award.

Climate Risk Analyzer is a software-as-a-service tool that combines stochastic projections from Conning's GEMS Economic Scenario Generator with the latest thinking on climate change effects within financial markets.

Its functionality includes climate scenarios of varying severity, including an orderly transition scenario, a disorderly transition scenario, and a failed climate policy, as well as many others. Other features included are a rich set of portfolio risk analytics, including VaR and Excess Climate Risk, as well as graphical representations of the risk through time.

The comprehensiveness of Conning's Climate Risk Analyzer stood out and it offers stochastic scenarios covering over 20 currency regions with diverse asset class coverage, such as government bonds of different durations; inflation-linked bonds; and US mortgage-backed securities.

InsuranceERM's judges described the product as a great initiative that supports scenario generation, takes account of tipping points and provides a better understanding of potential tail scenarios.

Asked how Climate Risk Analyzer been enhanced over the past year, a spokesperson for Conning says: "We saw more client demand from users wishing to dive into the details of how their asset class risk profiles change under different climate scenarios. To respond to this, we added the ability to perform asset class attribution of portfolio risk or return, as well as the ability to compare how the attribution changes under a defined climate scenario at different future time horizons.

"This includes the addition of more in-depth investment analytics, such as Marginal Contribution to Risk, so that users can understand more easily which asset classes should be bought or sold under a given scenario to minimis the impact on risk."