CAS Research Examines Climate-Driven Impact on Typhoon Risk and Insurance Losses

The Casualty Actuarial Society (CAS) has released a new research paper, A Quantitative Approach to Evaluate Climate Change Impact on Typhoon Risk with a Case Study in the Western North Pacific Basin, written by Yizhong Qu, Zhongdong Duan, Xiaoxuan (Sherwin) Li, Lei Pei, and Ji (Jeff) Yao. The report provides new insights into how evolving climate conditions are reshaping catastrophe risk and insured losses.

As climate risk continues to evolve, this research reinforces the critical role actuaries play in translating complex climate science into actionable insights for insurance and risk management. Using advanced climate models and catastrophe modeling techniques, the study provides a quantitative framework for understanding how typhoon behavior is expected to change and what those changes may mean for insurers, particularly in one of the world’s most exposed regions.

The study offers new insights into how these changes may affect risk in the Western North Pacific. The paper also demonstrates how integrating climate projections into industry catastrophe models can help insurers better quantify and prepare for evolving risk. Its findings underscore the growing need for insurers and actuaries to adapt catastrophe modeling, pricing, and risk management strategies in response to climate-related changes.

Through practitioner-driven research, the CAS equips actuaries and their employers with the tools and insights needed to assess emerging risks, inform business decisions, and support resilient insurance markets worldwide. The paper can be downloaded on the CAS website.