The Actuarial Society of South Africa (Assa) has introduced a framework to help life and health insurers evaluate the potential effects of climate change on policyholder outcomes. The Mortality and Morbidity Impact Assessment Framework provides a structured approach for assessing climate-related health risks across different product lines and demographic groups. This tool will enable insurers to better understand the implications of climate change on claims, reserving, and long-term solvency. The framework is designed to be adaptable, evolving with advancements in climate science and the changing needs of the insurance industry. By using this framework, insurers can make more informed decisions and better manage climate-related risks, ultimately protecting their policyholders and maintaining their financial stability. The framework is a significant step forward in helping the insurance industry address the challenges posed by climate change. It will support insurers in South Africa and potentially globally.
Insurance actuaries unveil innovative climate risk assessment tool
