Scenario analysis is a well-established tool that can be used to gain a better understanding of the impact of climate-related risks, and multiple papers have been published on the subject in recent years. The purpose of this document is to provide practical guidance on constructing climate change scenarios and applying long-term scenario analysis in climate risk assessments for insurers and pension funds. This can be used by actuaries and risk managers to analyse the potential short-term and long-term impact on their entity.
Report Guidance on long-term scenario analysis in climate risk assessments
Actuaries and risk managers will play a crucial role in assessing the impact of climate change risk on the balance sheet of insurers and pension funds.