There has been increasing interest from regulators and investors over recent years in how financial institutions are managing their climate risks. The Australian Prudential Regulation Authority (“APRA”) has made it clear that companies cannot ignore risks just because they are long term, because the time horizon is uncertain, or because there is uncertainty about future government policy.
This information note, published by the Actuaries Institute, provides Appointed Actuaries with an outline of how insurance operations may be impacted by climate change, and offers suggestions for how to address these issues in the Financial Condition Report. It is a summary of the requirements for the Appointed Actuary set out by the APRA in the Prudential Standard CPS3201. The note is divided into five sections, covering the possible impact of climate risk that actuaries of general insurers, life insurers, health insurers, reinsurers and all insurers should consider.
Climate Change – Information note for Appointed Actuaries
© Actuaries Institute Australia 2020