Quant shop preps NLP-powered index for physical climate risk

Sharp rise in extreme weather events prompts PGIM Quant to aim for better climate-risk pricing

Prudential Investment Management Quantitative Solutions (PGIM Quant) is trying a new tack to price physical climate risk more accurately. It’s building an index to measure this specific subset of risks based on natural language processing (NLP)—the field of artificial intelligence in which computers interpret written or spoken language.

The AI initiative began in response to the rising frequency and intensity of extreme weather events across the globe, says the firm. In the US alone, data from

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe

You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Waterstechnology? View our subscription options

FCA declines to directly regulate market data prices

A year-long investigation by the UK regulator to determine whether competition is hindered in the wholesale data markets has concluded with its decision not to directly regulate much-maligned data pricing and licensing structures.

Waters Wrap: Inside the mind of the CTO

After having one-on-one conversations with eight different senior bank technologists, Anthony explains how these execs look at innovation strategy from a philosophical perspective.

You need to sign in to use this feature. If you don’t have a WatersTechnology account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here