Climate change impacts on financial assets

The impact of climate change is felt through the weather – increasing average temperatures, and increasing variability of temperatures – and with these a variety of weather catastrophes which have enormous human and economic costs.

With actuaries and researchers we are working on the analyses of the impacts of climate change on two main types of financial assets:

• Weather catastrophe insurance - increased losses, increased capital requirements and increased premiums

• Green Bonds – the implied returns required on Green Bonds to compensate for higher carbon costs and higher economic costs to society