The Financial Stability Board’s Taskforce on Climate Related Financial Disclosures (TCFD), Chaired by Michael Bloomberg and heralded by Mark Carney, was established in 2016 to provide the financial services sector with a consistent and reliable means of assessing, pricing, and managing climate related risks. These recommendations enable investors to make better informed decisions and lenders, insurers, and underwriters to evaluate their risk over the short, medium and long-term.
Why is the IFoA getting involved?
Actuaries’ expertise allows them to identify and manage long-term risk. Actuaries can use these skills to play a vital role in driving the TCFD’s recommendations by conducting scenarios analyses that identify risk exposure and the potential effects of various mitigation measures. Without understanding the potential implications of climate- risk from these analyses, companies could face liability, physical and reputational risks. In addition, if a company does not take stock of its exposure to climate-risk now, the costs of transitioning to a low carbon environment in the future are likely to increase, placing a company at a competitive disadvantage.
The IFoA has produced a number of pieces calling the financial industry to take account of climate risk and recognising the recommendations of the Task Force as a vehicle for doing so. Our previous work includes:
Webinar with the Institute of Environmental Management and Analysis (IEMA)
25 April 2019
Watch the joint IFoA and IEMA webinar, ‘Task Force on climate related financial disclosures (TCFD) – introduction and perspectives for our professions’. The webinar is an opportunity to hear first-hand from:
- Steve Waygood, and industry leader and member of the TCFD
- Louise Pryor, Chair of the IFoA’s Resource and Environment Board, and
- Paul Pritchard, Senior Associate at Iken and IEMA member
Breakfast Briefing with Russell Picot and Louise Pryor
26 February 2018
View the breakfast briefing presentation where Russell Picot, Special Advisor to the Task Force and Louise Pryor, Chair of the IFoA’s Resource and Environment Board, discuss the recommendations and ways for actuaries and non-actuaries to collaborate for implementing the recommendations
Webinar with Russell Picot and Nico Aspinall
22 May 2017
Watch our webinar with Russell Picot and Nico Aspinall, former Chair of the IFoA’s Resource and Environment Board, to learn more about the work of the TCFD and how actuaries can play an essential role in creating systemic change.
Risk Alert and Pensions Guide
12 May 2017
Read the IFoA’s Risk Alert to all members warning all members to ensure they understand and clearly communicate the extent to which they have taken account of climate-related risks in any relevant decisions, calculations, or advice.
To support actuaries implementing this, the IFoA also produced a practical guide on resource and environment issues that are relevant for pension schemes and pensions actuaries.
Previous Consultation Responses
31.01.19 IFoA response to FCA discussion paper on climate change and green finance
15.01.19 IFoA response to PRA consultation on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change
22.01.18 IFoA response to FRC initial consultation on the future direction of the UK Stewardship Code
22.01.18 IFoA response to the European Commission- Public consultation on institutional investors and asset managers' duties regarding sustainability
22.09.17 IFoA response to EU Commission EU High Level Expert Group on Sustainable Finance
10.02.17 IFoA response to Task Force on Climate-related Financial Disclosures
29.04.16 IFoA response to FSB Task Force on climate disclosure consultation
24.03.16 IFoA response to EU Consultation on long-term and sustainable investment
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The International Accounting Standards Board (IASB) recently published an Exposure Draft (ED) of limited changes to its insurance contracts standard IFRS 17, effective date 2022.
The IFoA hosts regular roundtable meetings with the PRA on best practice in insurance investment and the application of the Prudent Person Principle, which governs insurance investment under Solvency II.
Presenter: Rahul Verma
Presenter Matt Modisett
An introductory session to help you get ahead with climate change.
- Science, terminology and initiatives: handy facts to keep in your back pocket
- Getting your point across: how to influence people and avoid common traps and pitfalls
- Taking action: what are actuaries expected to do...and what are we actually doing?
This KSS talk, presented by the FCA Head of Department in Scotland, will focus on the following 3 main areas:
- FCA business plan priorities
- The future of regulation
- FCA Engagement in Scotland
For life insurers in the UK, the risk margin is one of the most controversial aspects of the Solvency II regime. Following its implementation, the risk margin came under considerable criticism for being too large and too sensitive to interest rate movements. These criticisms are particularly valid for annuity business – such business is of great significance to the national system for retirement provision. This criticism has led to political interest, and the risk margin was a major element of the Treasury Committee inquiry into Solvency II.
GIRO is attended annually by over 800 delegates and speakers who are keen to discuss key topics such as Pricing, Reserving, Modelling and the future of the insurance industry. GIRO 2018 was a huge success and we have opened bookings early for what we hope will be another brilliant conference at the EICC in Edinburgh this year.
Presenter Jon Spain
Three actuaries – and CEOs – discuss their views on how the business world is changing and what that might mean for actuaries in the future.
This sessional will be taking place on 7 October in Edinburgh
The Life Conference is the premier event for professionals interested in life insurance. Offering a wide range of workshops and plenary sessions it’s the perfect opportunity to discover what’s hot and current in life insurance ensuring you get up to date on the latest thinking and innovation whilst meeting and exchanging ideas with a broad range of professionals.
The IFoA is pleased to announce that this year’s Autumn Lecture will feature the Rt Hon Nicky Morgan MP as its guest speaker. Nicky has previously served as Financial Secretary to the Treasury and Minister for Women. She now chairs the Treasury Select Committee whose remit is to examine the expenditure, administration and policy of HM Treasury, along with all of its agencies and associated bodies.
Watch the live stream of this year's Autumn Lecture with guest speaker Rt Hon Nicky Morgan MP.