Event Paper: Hot Topic 1 Reserving for Climate Change – the Emerging Risk Frontier

In 2022 the IFoA General Insurance Climate Change Reserving Working Party embarked on a mission to reframe the professional discussion surrounding climate change. Our pitch was that practical activity was needed, not moralising or hand-wringing.

In 2023 we set out some foundations by outlining the key issues around climate change that general insurance reserving actuaries needed to be aware of. We also shared some practical steps that could be taken.

This year, we continue to develop this work, addressing three sets of questions:

  1. Based on our 2024 survey, how far has the reserving actuary come since 2022? What does good practice around climate change reserving look like for 2024 year-end?
  2. How should reserving actuaries help insurers build reserving scenarios and other tools to meet the demands of boards, regulators and other stakeholders?
  3. What are the key steps for reserving actuaries and how can they develop and strengthen links with other parts of the business? How can actuaries in other disciplines derive value from the work of reserving actuaries? Where does the boundary lie when deciding whether climate change sits in the reserving space, or should remain another item on the emerging risk register?

Target audience and assumed knowledge level: Prior knowledge required.

Speaker and company

Alex Marcuson, Marcuson Consulting Ltd
Josie Durley, Nephila Syndicate Management
Sarah Grimshaw, Riverstone International
Konrad Farrugia, Direct Line Group