How climate change will affect society is a complex question, and the answer depends on the temporal and spatial scales over which one is concerned, the entities of interest, judgment criteria, and the desired level of certainty. Assessing the potential impacts of climate change on insurance is similarly complex. In addition, climate change—given its potential for systemic impact—can dramatically alter the risk management landscape.
The Casualty Actuarial Society, Canadian Institute of Actuaries, Society of Actuaries, and the American Academy of Actuaries’ Property/Casualty Extreme Events Committee have responded to this emerging risk by collaboratively commissioning committees to recommend, support, and perform research on climate change and assess the potential risk management implications for the insurance industry.
Phase I is a synthesis of a vast and rapidly growing body of scientific knowledge on climate change with a focus on potential impacts to society and the insurance industry. The CIWG fostered collaboration among the representatives of the various actuarial societies and the climate scientists at Solterra Solutions to create the report.