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
PGIM Quantitative Solutions 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
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