Tipping Points in Climate-Related Insurance Modeling

August 2024

Authors

Steve Bochanski, FSA, CERA, MAAA
Graham Hall, FIA
Lindsay Ross, MA
Eleanor Middlemas, PhD
Peyton Sanborn, BS

Description

This report provides actuaries and other professionals working on climate-related risk with a methodology to identify climate regime shifts in different climate scenarios that could represent a “new normal” for insurers. As climate change occurs, insurers need new techniques to identify regime shifts: large sudden changes in systems that indicate a transition from one steady state in a system to another. By incorporating these new techniques and datasets into existing risk management, underwriting, pricing and investment management processes, insurers can prepare and adapt to a changing climate.

Bericht

Tipping Points in Climate-Related Insurance Modeling

Acknowledgments

The researchers’ deepest gratitude goes to those without whose efforts this project could not have come to fruition: the Project Oversight Group for their diligent work overseeing, reviewing and editing this report for accuracy and relevance.

Project Oversight Group members:
Brian Hinkle, FSA
Priya Rohatgi, ASA
Peter Sousounis, PhD
Chelsea Shudtz, FSA, CERA
Remi Villeneuve, FSA, FCIA

At the Society of Actuaries Research Institute:
Rob Montgomery ASA, MAAA, FLMI, Consultant – Research Project Manager

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