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GIRO 2007 - 10 Things to do

1. If you’re on the fence get off it: There is enough consensus amongst scientists to conclude that climate change is happening, is man made and is a major global problem. The majority of us aren’t qualified to argue against the scientists; nor do we have the time. Access our Wiki site as a source of information on the current scientific consensus on Climate Change and on the impact of Climate Change on non-life insurers
2. Convince a sceptic of the importance of Climate Change in an intelligent and informed way using the knowledge you have gained. Skeptics are still out there. Perhaps on your board? Or in your team? They usually haven’t followed the debate too closely. Might watch channel 4 a little too often.
3. Contribute to our Wiki site. The role of actuaries in helping the non-life insurance industry face the threats and realise the opportunities of climate change will be greater if we speak with once voice and share our views.
4. Ensure Climate Change is discussed in your company’s long-term strategy plans. In many cases it will be already. If it isn’t then is your company missing the boat. There are plenty of opportunities for insurers to be a part of the solution; we believe this will help our industry’s reputation but can also add to profits.
5. Make sure that your property pricing is not simply based on long-term averages but allows for the already observable trends (such as those observable in wildfire and hurricane time series). Regulators in Florida have used the excuse that rates must be based on an “actuarial approach” by which they mean a long term average of past data with no adjustment. This is not actuarial, it is not correct to perceive our profession in that way.
6. Find out whether your liability underwriters are considering Climate Change as a source of latent claims. If you are responsible for capital modelling do you consider the financial impact of a legal judgment that finds that some of the companies responsible of emissions are liable for the damage? Many liability underwriters believe that such claims are excluded; has this been tested?
7. Ask your Treasury colleagues what they are doing about Climate Change in relation to assets. In particular; shouldn’t all insurance equity portfolios be managed with under a responsible engagement mandate? We’ve given more details in the asset section.
8. Ensure your company maximises its opportunities from adaptive responses to Climate Change (including in the developing world). Look to work in partnership with your policyholders to help them manage the risk and keep premiums down.
9. Lobby within your company for it to be at the forefront of mitigation. In particular your company is a major procurer of goods; as you are involved with repairs to damage. Point this out to your boards; encourage them to influence your suppliers to recycle where possible; and if they can’t, to dispose environmentally. Where new goods have to be purchased give policyholders the choice to choose equally priced sustainable products. Find out who your corporate social responsibility manager is; are they aware of how your company compares to others in terms of carbon footprint and other environmental measures?
10. Take action to reduce your own carbon footprint. Our Wiki site has suggestions here including how you can neutralise the effects of your travel to GIRO (particularly in the years it is overseas).

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