Climate transition plans are essential for insurers to navigate the complex and non-linear shift to a low-carbon economy. These plans are gaining momentum globally as they not only describe climate commitments and targets, but also explain how those objectives fit into an insurer’s overall business strategy. An effective transition plan can provide an insurer with a roadmap for driving sustained business outcomes as market dynamics change and society’s expectations shift.
This session will first describe the key elements of a climate transition plan and where insurers should be developing a strategy, covering both underwriting and investing. We will then discuss the tools and modeling approaches required where actuaries have a key role to play, and finally describe concrete actions insurers can take today to ensure their business is ready to maximize the opportunities presented from the climate transition.
Learning Objectives:
Understand why insurers should consider developing a robust climate transition plan.
Describe the key elements and analysis required to support an insurer climate transition plan.
Understand how actuaries can support insurance company leadership in developing a climate transition plan.
