By Andy Peara and Evan Mills
Contingencies: Journal of the American Academy of Actuaries," pp. 16-23
(January/February 1999 issue).
Lawrence Berkeley National Laboratory Report No. 42580.
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If insurers are looking at extreme weather events, they’re bound to look closely at cause and effect. Despite Congressional resistance to the Kyoto Protocol and climate research, some insurance organizations have recognized the value of maintaining research into global warming. Better climate research would benefit insurers as would more complete historical records of climate impact. Actuaries could play a role in assessing the financial consequences of projected climate impacts, reviewing climate impact model assumptions and considering the practicality of mitigation efforts in much the same way they informed Congress on health care and Social Security. Greater collaboration between actuaries and climate impact modelers might result in improved climate impact projections and greater public understanding of climate change. At the very least, actuaries might sharpen their estimation of climate risks.