Measuring the Financial Side of Climate Risk – Actuarial Approaches

Announcements from the European Actuarial Academy organiser: Climate change is no more a debatable issue but a key World concern with potentially catastrophic consequences. Impacts on the environment are blatant, but quite often the financial side of climate change, i.e., the climate risk, is less obvious. Actuaries worldwide agree nowadays on the relevance of the topic and on the need to develop methods and techniques for measuring both the frequency and the financial impact of extreme climate events. During the web session, developments in the field currently under way in North America, Australia and Europe will be described at length.

From a Risk Management perspective, insurers are also expected to manage effectively their exposure to climate risks. According to the Financial Stability Institute, insurance international supervisory authorities deem climate risks as “reasonably foreseeable and relevant material ones”. Hence, these authorities expect insurers to address climate risks in their ERM – Enterprise Risk Management frameworks. In their current stage, modelling approaches can be considered as a means of improving the understanding of the financial effects of climate risks for insurers.

This web session will provide an overview of the work in progress Actuarial Associations are carrying out all around the World to develop actuarial methods for measuring climate risks, of the risk management perspective for insurers and, last but not least, of the guidelines issued by international insurance authorities to address the challenges climate change poses both for the insurance industry and for the whole society.

The web session is open to all interested persons.

The objective of this web session is to provide the participants with an overview of the state-of-the-art approaches to the challenge climate change poses to insurers and, in particular, to actuaries. Starting with the definition of climate change from a financial perspective, the web session offers an introduction to climate risk taxonomy, a review of the methods actuaries are currently developing worldwide to measure it, and insights on insurance approaches to climate risk management and on supervisory expectations.

The registration fee is € 100.00 plus 16% VAT. Click here to make a reservation