Session 1: Climate Change Scenario Analysis for Insurers Revisited: Emerging Trends & Best Practices

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Description

[PART OF THE 2024 CAS CLIMATE RISK VIRTUAL SEMINAR]

An analysis of the impact of climate change on financial institution solvency, profitability, and other key performance metrics is, or is likely to be, required by financial regulators in most major economies in the very near future. Regulators are signaling that such impacts should be assessed through the use of scenario analysis, both qualitatively and quantitatively. This session will first provide an overview of recent changes to the regulatory landscape for insurers as it relates to the disclosure of climate risk. The session will then explore the mechanics and current best practices that actuaries and risk modelers may use in performing qualitative and quantitative climate risk scenario analyses, covering both physical and transition risks. Finally, it will explore how insurers can use transition planning to coordinate a cohesive transition to a low-carbon economy.

Learning Objectives:

1. Develop an understanding of regulatory requirements for climate risk disclosure across the world.
2. Identify and develop awareness of industry standard climate ‘pathways’ to consider within climate risk scenario modeling.
3. Explore how transition planning can help insurers integrate climate into their firm’s business strategy.

Contributors

Adam Kallin

Adam is a Director in PwC’s Climate Risk Modeling practice. He has more than 12 years of experience, and has most recently focused on helping financial and non-financial institutions identify and quantify the financial impact of material climate-related risks and opportunities facing their business. He additionally has focused on helping financial services companies develop an asset portfolio carbon footprint and set and understand decarbonization pathways.

Adam’s recent experience includes leading a number of engagements to identify and quantify climate-related transition risks and opportunities through the use of scenario analysis and custom-built models. His projects have included quantifying the impact of global energy supply and demand on company revenue, scope 2 emissions minimization assessments, quantifying long-term financial damages to real assets driven by acute and chronic weather events, and assessing the impact of the implementation of a global carbon tax. He has further helped his clients in summarizing the results of such modeling into CDP, TCFD, and other sustainability reporting disclosures.

Adam has a bachelor’s degree in finance from the University of Florida and is a Fellow of the Casualty Actuarial Society
Paige Fox

Paige is a Senior Manager in the Risk Modeling Services practice at PwC with over 9 years of quantitative risk modeling and model validation experience. Paige supports PwC’s Sustainability practice, where she focuses on climate change disclosure and modeling as well as related risk management and risk mitigation strategies.

Paige has worked on many climate risk projects for clients across a wide range of sectors and lines of service. Her work has focused on aiding in the implementation of TCFD-aligned processes across the company to align climate reporting across emerging regulatory requirements with strategic and sustainability goals. In particular, this includes leveraging her highly analytical background in performing quantitative physical and transition risk scenario modeling across climate-related risks and opportunities impacting varying industries.

Paige has a Bachelors of Science degree in Mathematics from the George Washington University, Washington, DC. She is a Fellow of the Casualty Actuarial Society and Member of the American Academy of Actuaries
Joshua Rosenheck

Joshua is a Manager in PwC's Risk Modelling Services group where he works in the Sustainability and Climate Risk space.

Joshua’s recent experience has primarily focused on quantifying climate-related risks through scenario analysis, including both physical and transition risks. Working across products, operations, and investment portfolios, Joshua has leveraged his modeling background to assess a variety of risks and opportunities throughout the value chain. Joshua has worked with clients in the insurance, banking, energy, telecommunications, and manufacturing sectors to quantify the financial impacts of their climate-related risks and opportunities and to summarize those results for various disclosures, including CDP responses, TCFD reports, and other sustainability reports.

Joshua holds a Bachelor of Arts in Mathematics from Binghamton University.

Thank you

Description

Contributors

Adam Kallin

Paige Fox

Joshua Rosenheck