The Geneva Association Task Force on Climate Change Risk Assessment for the Insurance Industry
The Geneva Association’s new report offers the insurance industry an integrated, decision-making framework for designing climate risk assessment and scenario analysis.
Join their #RiskConversations webinar on 3 March for a discussion of the report’s findings.
Dramatic changes are still needed to pivot the world economy away from carbon-intensive sectors and to reach the climate change goals of the Paris Agreement.
To guide different industries in taking action, the Task Force on Climate-Related Financial Disclosure (TCFD) raised the need for decision-relevant, consistent and comparable climate information. There is considerable work ahead for the insurance industry to make headway on the TCFD’s recommendations.
In response, The Geneva Association has mobilised a task force of leading experts from the world’s largest insurers, representing the companies of our CEO members. The initiative is working to develop methodologies and tools for climate risk assessment – and build engagement with regulators, rating agencies and the scientific community – to identify the most viable ways forward.
This first report of the task force finds that:
- For both P&C and life re/insurers, climate change presents different levels of physical and transition risk to both sides of the balance sheet (liabilities and assets).
- Developing climate risk assessment methodologies and tools for insurers is a work in progress, requiring qualitative and quantitative approaches over different time horizons.
- Uncertainties associated with transitioning, related to public policies, regulations, technological advancement and markets, will increasingly affect levels of climate change risk and the future risk landscape.
- Robust dialogue across insurance companies and with all stakeholders is increasing climate risk awareness, strengthening collaboration and ensuring effective actions are taken.
The task force will continue its work, analysing the insurance regulatory landscape related to climate risk, and conduct a technical ‘deep dive’ to develop methodologies and tools for scenario analysis for the insurance industry.
Read the report here.
Register for the webinar here.