To: FMA Liaisons to the IAA Climate Risk Task Force; Members of the Insurance Regulation, Pensions and Employee Benefits, General Insurance and Health Committees, and the Resources and Environment Working Group; and Interested Parties.
Cc: Council members, Correspondents, CRTF, IAA Officers (for information)
We are pleased to attach a draft of the IAA paper “Introduction to Climate-Related Scenarios” for review and comment. This is the second of a series of papers being developed by the the IAA Climate Risk Task Force as a deliverable in the Statement of Intent for IAA Activities on Climate-related Risks (SOI) adopted by the IAA Council on 7 May 2020. The first paper titled Importance of Climate-Related Risks for Actuaries was published in September 2020. Other papers to expect in the series are:
A paper designed to further stimulate development of effective and globally applicable links between climate-related risk scenarios and insurance and pension risks and costs.
- A paper on the application of climate-related risk scenarios to asset portfolios with an important subsidiary goal of encouraging consistency between assets and liability modeling.
- Advice on climate-related risk management and addressing emerging third party regulatory/reporting/disclosure requirements.
- A paper on the potential effects of transition and adaptation steps.
- Review of existing IAA publications to identify and address any climate risk related gaps.
- A paper on the link between climate-related risk scenarios and social security.
If you are receiving this draft as an FMA Liaisons to the IAA Climate Risk Task Force or a delegate representing your association in any one or more of the committees addressed in this e-mail, we request, that in addition to reviewing it yourself, you share the draft with your home association – especially with those engaged in climate related risk initiatives - to review and provide feedback from your association’s perspective. Please note that this will be your association’s only opportunity to comment on the draft paper.
We ask that you and your association particularly consider the following questions:
Considering this paper to be an introduction to climate-related scenario development, and also considering the topics of papers to follow in this series,
1. Does it cover the right level of background information on climate change?
2. Does it adequately cover the principles needed for developing climate change scenarios?
We kindly request you to follow the instructions in the comment template provided herewith to submit your comments.
Please e-mail your comments in an attachment to firstname.lastname@example.org. We look forward to receiving your feedback as soon as possible, but no later than 12 October 2020.
Feel free to contact Amali Seneviratne at the IAA Secretariat (email@example.com) if you have any questions.
Final Statement on Intent for IAA Activities on Climate-related Risks- adopted by Council on 7 May 2020
IAA Consultation on Statement of Intent for IAA Activities on Climate-related Risks
Comments due by 31 December 2019
The IAA is seeking feedback, through consultation with its Member Associations, Partners, Observers and Patrons on the draft Statement of Intent for IAA Activities on Climate-related Risks. Feedback on this consultative document is invited by 31 December 2019 at 24:00 EST.
How to provide feedback:
We request that you follow the instructions contained in the transmittal memo and use the IAA Comment Template (see above) when providing your comments.
Please contact Amali Seneviratne (Director, Technical Activities) at the IAA Secretariat should you have any questions.