催化變革共建氣候韌性未來.pdf

1、Catalysingchange for a climate-resilient tomorrow Min Hung Cheng,Deputy CEO,GAIP Joey Zhou,Associate Professor,NTU 27 Aug 2024Introduction Organization:GAIP and NTU Research background2Anchor PartnersA tripartite public-private partnership with the vision to build long-term risk resilience in Asia,v

2、ia narrowing Asias protection gapsRegulatorsInsurance associations and professional bodiesInternational BodiesAcademic PartnerSupporting PartnersAustraliaBruneiChinese TaipeiIndiaJapanPhilippinesSingaporeSri LankaThailandVietnam3GAIPs work on Climate Change so farPolicy research:Too Hot to Insure“em

3、phasises that inaction on climate change is not an option,urging for a collective effort to tackle the increasing risks posed by climate change to maintain the availability and affordability of insurance.Beyond Protection calls on the insurance industry to go beyond financial protection and play a k

4、ey role in driving the transition to a net-zero economy,which is essential for managing climate risks and ensuring industry resilience.44Climate Change Adaptation and Disaster Risk Management：Insurance Industry Practices and ProspectsDiscussed the impact of climate change on the insurance industryRe

5、viewed practices of the insurance industry in response to climate change,Summarized the roles of the insurance industryExplored innovative paths to enhance climate risk resilienceProvided policy recommendations for industry participation in climate change adaptation(with a focus on China)5Current st

6、ates Setting the context-Climate Change and Climate Risks Collection of case studies of insurers current response to climate change6It is a Financial RiskRealization that Climate Risk leads to Financial Risk01It is both a Micro and a Macro problemIt impacts individual firms AND threatens overall mac

7、ro financial stability02Duty to ActBoards need to incorporate into strategy;Asset Owners and Managers must deal with it;Regulators must take action03Disclosure is a key focusYou cant deal with it if youdont measure it.Once youdisclose,a response/plan isrequired04Climate Risks Principles 05Analytical

8、 tools and solutions can then followRisk Frameworks:Physical,Transition;Scenarios as a tool7 Climate Risk is used here to mean Climate-related financial risks,which are the financial risks linked to climate change.It can affect the balance sheet,and lead to losses(e.g.stranded assets or loan default

9、s)Climate Risk A financial risks Physical Risk arise from the physical climate(and weather)impacts that result from the changing climate E.g.Floods,Cyclones,Sea Level rise,Heat,Water Stress Viewing climate through a risk lens means zeroing in specifically on the ways in which climate change(1)affect

10、s assets;(2)how they transmit into the economy;and(3)how different sectors are differentially affectedPhysical RiskRisk ViewpointTransition Risk Transition Risks arise from the economic transformation and any dislocation needed to reduce,and eliminate GHGs E.g.Policy changes,Consumer Pressure88More

11、disasters and higher economic losses from 1900 to 2023Sources:Munich Re Climate ResearchThe frequencies of natural disasters increases significantly in recent decadesThe economic losses increases sharply too9A collection of cases about climate change responses123Scientific research on climate riskDi

12、rect hiring of the teamsFoundations supportResearch AwardsClimate change into disaster loss modelsStarted as early as the 1990sMore advanced applications in recent yearsClimate Risk ReductionPublic Policy SettingsProject Financing Risk reduction as a service10A collection of cases about climate chan

13、ge responses456Direct and indirect investment in Climate impact projectsDirect participation in Carbon marketsDiscussion on infrastructure that has climate impactsInsurance product innovation to change consumers behaviourPAYD InsuranceEV friendly insuranceGreen upgradesInsurance innovation to carbon

14、 marketsNatCat cover on carbon projectsPolitical risks and Policy risksCredit risksCarbon promise11The insurability tipping point12Insurers roles13Catalysing Change Going Beyond Protection14Catalysing Change Going Beyond Protection15Its not so easySo what can we,as the actuarial community do?16Chall

15、enge 1 Data and risk modelsChallengeWhat can actuarial community do?SupportClimate change introduces new variables and uncertaintiesData and risk understanding(models)are scarceContinue advocating for data democratizationCollaborate beyond our community to enhance risk understanding and hence,enhanc

16、e risk data and risk modelsGAIP-NTU study with EOS and IRFRC on the impact of rising sea levelsGAIP-NTU study on the impact of climate change on mortality projections17Challenge 2 Alignment of pricing and product design in terms of time horizon and climate risk reduction effortsChallengeWhat can act

17、uarial community do?SupportThe benefits of climate risk reduction measures need to be modelledClimate change impacts and risk reduction benefits are long termQuantify the benefits of risk reduction measuresTake into account the longer-term implications of climate change in product design and risk me

18、asurementFostering the use of public/private partnerships to make effective use of insurance mechanisms1,2 Ensuring climate-related risks are considered holistically,including the benefits of climate risk mitigation measures1,31.“Aisling Kennedy,et.al,2023,“The Climate Change Adaptation Gap:An Actua

19、rial Perspective”,IAA2.Shaun Wang and Andreas Bollmann,2024,“A Strategy for Rolling out Climate De-Risk Insurance through Regional Collaboration,”Asia-Pacific Journal of Risk and Insurance”3.FEMA and Natural Hazard Mitigation Saves:2019 Report,National Institute of Building Science,US18Challenge 3 C

20、limate literacyChallengeWhat can actuarial community do?SupportTwo levels:Low climate literacy among the massesClimate literacy within the insurance sectorUpskill with regards to climate change knowledge and importantly,the broader ecosystem implicationsNTU Executive Education coursesPlan to launch an insurance-dedicated program in 1H2025Register for interestsIFoA course19Climate risks and sustainability educationTrained 800 professionals across various sectors Launch an insurance centric version in 1H 2025Revisit:2023 March SAS AGM PresentationToday More Options from NTU20Q&AThe End21