Climate change: how are (re)insurance actuaries facing the challenges ahead?

How is climate change affecting the insurance industry – specifically the work of General Insurance actuaries?

We surveyed a number of senior figures from a range of insurance firms to understand what is being done in each of the main insurance areas, across different risk profiles.  

Insurance practitioners, especially actuaries, have an opportunity to do something about climate change. That’s because climate change is riddled with uncertainty. 

"The risk management expertise of actuaries means they are ideally equipped to begin to quantify and mitigate this uncertainty."
General Insurance actuarial report Barnett Waddingham

This report examines the climate change situation as it currently stands. However, in the light of the ongoing Covid-19 outbreak, we will monitor any potential long term impacts caused by the pandemic and look to publish our views in due course.

What topics are covered in the report?

  • What can actuaries do about climate change?
  • What actions are being taken now?
  • Is regulation the driving force for climate change action?
  • What are reserving actuaries doing?  
  • What are catastrophe modelling actuaries doing?
  • What are pricing actuaries doing? 
  • What are capital modelling and validation actuaries doing?
  • What else are actuaries doing?

We hope you find this report valuable and insightful.

Please contact Scott Eason if you would like to discuss any of the above topics in more detail.