Climate Change Risk Assessment for the Insurance Industry - A holistic decision-making framework and key considerations for both sides of the balance sheet

Climate Change Risk Assessment for the Insurance Industry

Creator: The Geneva Association
Type of methodology: Check-list
Approach type: CVRA (Climate Vulnerability and Risk Assessment)
Short description: No methodology, suggests taking into account of physical risk on business lines/assets through quantitative or qualitative scenario analysis, or alternatively through catastrophe analysis.
URL to access information about the tool: https://www.genevaassociation.org/sites/default/files/climate_risk_web_final_25…
Hazards covered: Others
Audiences: Financial institutions
Assessment level: Business line
Evaluation system:

N/A

Strengths:

Draws attention to the need to assess climate risks for businesses/assets, and in particular suggests quantitative/qualitative scenario analysis.

Limits:

 

  • Not specific to buildings
  • Does not describe steps of a specific methodology

The report informs that climate-change-related physical risk on business lines and assets can be considered by performing quantitative or qualitative scenario analysis. The report mentions that natural catastrophe models can also be used to integrate these concerns.

The Geneva Association Task Force on Climate Change Risk Assessment aims to advance and accelerate the development of holistic methodologies and tools for conducting climate risk assessment and scenario analysis.