IFoA publishes climate modelling report

The Institute and Faculty of Actuaries has said current climate scenario modelling is falling short of what is needed to address certain risks to the economy and society, and sets out a ‘Planetary Solvency’ framework which would consider nature as an "asset that provides ecosystem services to society". Stakeholders are urged to consider specific climate risks in their modelling and to move from considering climate impacts as ‘tail risks’, towards more realistic scenario modelling and “positive tipping points” in their risk assessments.