Using data to manage climate change risks

foryourlifeca

The impacts of climate change are on many people’s minds. Actuaries use data to analyze the challenges – and opportunities – climate change presents, and develop ways to manage the risks.

Transcript

00:00 [Music]

00:05 I think like most Canadians, I'm concerned about climate change.

00:08 But I think we're getting there, you know, as individuals,

00:11 and as a profession, we understand that climate change is important.

00:14 Actors are in the business of risk, and what's more risky than climate change?

00:18 It's starting to spark some concern.

00:20 The past few winters have been getting warmer and warmer here in Canada.

00:24 It's a challenge as well as an opportunity.

00:28 It's really hard to tell to what extent climate change could affect,

00:33 let's say, our clients' behaviour.

00:35 And is it going to affect us because of a lot more natural disasters?

00:39 Some areas we've seen that have become uninsurable, or you have to risk mitigate.

00:44 So there's a lot of people that are unfortunately are affected by climate change.

00:48 Are the perils that you're facing going to be different,

00:53 and therefore the risk is different, and therefore the premium is different?

00:56 Actors build models to monitor climate change,

01:00 and they have expertise in this field.

01:03 The more data and insights we have, the better we understand the risk,

01:06 manage the risk, and price for it.

01:08 So the more we know, the better.

01:10 And it just means that we can access and protect a broader spectrum of the population.

01:15 It's the responsibility of Actors to kind of incorporate that risk into our models,

01:19 to make sure that we're accounting for any future developments,

01:22 and making proactive decisions.

01:24 Actors play an enormous role in terms of influencing sustainable insurance practices,

01:30 and making kind of data-driven decisions,

01:33 so that we're implementing things that have the most impact.

01:36 Where we could support through the modelling and advancement of modelling,

01:41 is to put a slightly more realistic picture of what the correlations are.

01:46 We look at data, and we analyse and assess it to come up with an answer.

01:50 So I don't see why now is any different.

01:52 With data, with interventions, with the right policies, I think the future is very bright.

01:58 This is just the beginning.

02:00 Over the future, I think there will even be more opportunities and possibilities

02:04 for us to provide value.

02:07 [Music fades]

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