On May 12th, the Institute and Faculty of Actuaries issues a Risk Alert to draw attention to the myriad of new risks posed by climate change, in which they state, “There is an increasing body of evidence demonstrating that climate change represents a material risk to future economic stability.” The Institute asks members to think carefully about “the consequences” of the work they are doing. Actuaries’ role in the assessment of risk, and value at risk, is not only becoming increasingly challenging as historical data is less predictive, it is also becoming more important.
