Part three in a series exploring climate-related risk around the world.
While most insurers, governments, and communities around the world recognize that climate change is an emerging risk, many people assume that the impact will not be material in the next few years. However, climate change – especially when combined with other factors – is having an impact on communities and businesses globally. In some countries, both the frequency and severity of natural catastrophe events have increased. And according to the World Meteorological Organization, July 2023 has been recorded as the hottest month on record.
Most regulators in Asia have already taken actions to encourage the insurance industry to manage the risks posed by a changing climate. In fact, a few regulators have even requested the insurers perform a climate stress test.
In this webinar – part three of the Milliman Climate Resilience Initiative’s “Around the World” series – we provide an update on the regulatory requirements for climate risk stress testing in Asia. We also discuss the current stress testing practices by non-life insurers as well as an alternative solution insurers can consider to help manage their climate risk. Lastly, we look at the impact of climate risk to emerging Asian markets, such as the Philippines, and the business opportunities that may arise from addressing these risks.