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Call for Essays on the Impact of Climate Change on the Insurance Industry – Deadline Extended

07/24/2013 —

Deadline extended. Essays are now due August 6.

The Casualty Actuarial Society (CAS) Climate Change Committee, which recommends, supports, and performs research on climate change and assesses the potential risk management implications for the insurance industry, is pleased to announce a call for essays on the impact of climate change on the insurance industry.

The Climate Change Committee has a subcommittee, the Climate Index Working Group, which is a collaborative effort of the American Academy of Actuaries, the Canadian Institute of Actuaries, the CAS, and the Society of Actuaries. This working group is currently overseeing a climate change research project commissioned by the four actuarial organizations. This project consists of two phases. Phase 1 has already been completed and it is a synthesis of the extensive and rapidly growing body of knowledge on climate change as it relates to possible impacts on human society. Phase 2 is developing the Actuaries’ Climate Change Index that will be available as a service to the public. The index is being developed to help raise awareness of the potential risks associated with climate change and the risk management implications within North America and globally. The index will highlight important indicators of climate change such as hurricane intensity, Arctic ice cover, melting of land-based glaciers, wild fires, floods, droughts, and temperature extremes.

Following the release of the Phase 1 report, the Committee is issuing a call for essays. The essays are expected to be published in Fall 2013. Following the release of the Phase 2 research, the Committee expects to run a call paper program in 2014 on the uses of the Climate Change Index.

The Climate Change Committee is currently seeking essays on the impact of climate change on the insurance industry. For example, the essays can investigate one or more of the following topics on risk management, ratemaking and reserving:

  • What processes can be used to identify, assess and manage climate change risks, including financial implications?
  • What is the impact of climate change on claims, by geographic area or otherwise, e.g.
    • Property (fire, flood, wind, drought)?
    • Casualty (environmental liability, directors and officers liability)?
    • Life & health?
  • How should loss models incorporate climate parameters?
  • How can customers improve their resilience to extreme events, and how can insurers best encourage them to do so?
  • What is the impact of climate change on insurer expenses e.g.
    • Regulatory (NAIC, SEC, EU, rating agencies)?
    • Reducing emissions/becoming green?
  • What is the impact of climate change on underwriting (products, terms and pricing)?
  • What is the impact of climate change on reserving?
  • What are potential impacts of climate change on investment returns, and how might insurer investment policies change in light of the new risks and opportunities?
  • What is the impact of climate change on insurer business continuity plans?
  • How can Enterprise Risk Management be engaged in dealing with climate change?
  • Are there correlated risks between investments and underwriting portfolios as a result of climate change?
  • How can uncertainty in climate models and adaptation/mitigation be measured and handled?
  • How can the Actuaries’ Climate Change Index be used to help evaluate any of these questions?
  • What role should actuaries play in addressing climate change?

Essays are now due August 6, 2013.

Each essay should be no more than three pages (approximately 2,000 words or less), written in English or French. Prizes may be awarded for worthy essays from a prize fund of $2000. The prize fund is set up so that all the money is not given to just one essay.

Publication of the essays is planned for Fall 2013. There is no guarantee that all essays submitted will be published.

Please submit essays to Cheri Widowski at the Casualty Actuarial Society, with the subject line, “Climate Change Call for Essays.”

Any questions can be addressed to Betty-Jo Walke, Climate Change Committee member.

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