Adaptation, when used in relation to climate, is the process of adjustment to actual or expected climate and its effects. Progress on climate adaptation has been slow, siloed and incremental, with little evidence of the transformative adaptation that is needed to address significant climate hazards and exposures. There is a substantial gap relative to the level of adaptation likely to be needed given predicted levels of global warning. Investment in adaptation now can reduce the ultimate costs of climate change significantly.
Actuaries can contribute to adaptation planning and the assessment of potential adaptation actions, not only in the usual areas of actuarial practice but through broader application of their experience and skills in risk management and cost-benefit and scenario analysis.
This paper aims to provide an overview of the issues involved in adapting to climate change, both in general terms and with a focus on considerations relevant for current areas of actuarial practice. It also aims to identify areas in which actuaries can participate more broadly in adaptation action. Actuarial training in risk assessment and measurement means that actuaries will take account of the uncertainties inherent in designing adaptation solutions and anticipate and quantify the costs and benefits of such solutions over time, having regard to a range of potential climate scenarios.
Webinar held on June 27, 2023:
Presentation: by Gabor Hanak (Chair of CRTF), Aisling Kennedy, Sam Gutterman, and Stuart Wason (Co-Authors)
