CATASTROPHE 

column by Loudina Erasmus

Loudina Erasmus is a member of the Sustainability and Climate related Risks working group

CATASTROPHE – an event causing great and sudden damage or suffering. This can be the loss of a loved one on a personal level or a fire, flood, or earthquake impacting an entire community. Nobody wants to contemplate the possibility of a catastrophe affecting them, which often leads to inadequate preparation. Envisioning potential scenarios before they unfold is a practice often neglected.

Read the column here.

 

Disclaimer:

This column represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 35 – September 2023

AAE submitted a response to the IAIS consultation on ICS as a prescribed capital requirement.

AAE’s submission can be found here.

EAD 2023 – A SUCCESSFUL EUROPEAN ACTUARIAL DAY WITH OPPORTUNITIES FOR IMPROVEMENT

by EAD 2023 Organising Team

The European Actuarial Day (EAD), held on 27 June 2023, proved to be a remarkable success, attracting a large number of registrations and receiving positive feedback from participants. The event witnessed high engagement during sessions and received excellent ratings in the participant survey. This article summarizes the key highlights of EAD 2023 and presents ideas for future editions.

Read the full article here.

 

This article was published in The European Actuary No. 35 – September 2023

It’s official! AAE is on the move. 

AAE will be relocating to a new modern office from 1 October 2023.

AAE POSITION ON IORP II DIRECTIVE

by Tatiana Bitunska and Philip Shier

		Tatiana Bitunska – is Chair of the Pension Committee
		Philip Shier – is Chair of the TF review IORP2

 

AAE is a professional association of actuaries who are well known as financial architects of society because their combination of analytical and business skills is used to address a growing variety of financial and social challenges worldwide. Actuaries are expected to provide decision-makers with valuable information to assist them to take long-term strategic decisions, as well as providing practical solutions to problems involving the possible consequences of future uncertain events.

 

Read the full article here.

 

This article was published in The European Actuary No. 35 – September 2023

WHY NATURAL CATASTROPHE FREQUENCY-SEVERITY ADJUSTMENTS UNDERESTIMATE TAIL RISKS FROM CLIMATE CHANGE

by Cameron Rye

		Cameron Rye is Head of Modelling Research and Innovation within the WTW Research Network.

Climate scenario analysis has advanced significantly in recent years, with many insurers now adjusting natural catastrophe models to explore how physical risks could change over the coming decades. Extreme weather events – such as windstorms, floods, and wildfires – are projected to become more frequent and severe in many parts of the world. As a result, actuaries, catastrophe modelers, and regulators have focused their attention on methods for modifying frequency-severity relationships.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 35 – September 2023

SOME THOUGHTS ON NAT CAT AND INSURANCE POLICIES

by Michael Schüte and Dorothea Diers

		Michael Schüte – works as an actuary for Helvetia Schweizerische Versicherungsgesellschaft AG and is member of the German Association of Actuaries (DAV) since 2004. He chairs the DAV working group on Climate Change. Furthermore, he is a lecturer for insurance mathematics at the University of Marburg, Philipps-Universität.
		Dorothea Diers is Head of Capital and Risk Management at Provinzial Group, Germany. She is member of the German Association of Actuaries (DAV) since 2002 and chairs the working group Non-life Risk Models. Furthermore, she is apl. Professor in Actuarial Science and Enterprise Risk Management at Ulm University.

 

When we talk about climate change we have to consider that climate change will have an impact on the frequency and the severity of significant Nat Cat events. A rising temperature has an effect on the possibility of storing and transporting water in the sky. A change in the classical streams can induce stable weather situations with steady rain over several days.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 35 – September 2023

BRIDGING THE INSURANCE GAP – A GLOBAL CHALLENGE FOR FINANCIAL RESILIENCE

by Monika Lis

		Monika Lis – is manager at Milliman, Warsaw, Poland

The insurance industry plays a crucial role in safeguarding individuals, businesses, and economies against unforeseen risks. However, despite the widespread availability of insurance products, a significant portion of the global population remains exposed to financial vulnerabilities due to the insurance gap. The insurance gap refers to the disparity between the actual insurance protection in place and the level of coverage needed to mitigate risks effectively. This article explores the multifaceted nature of the insurance gap, its impact on global economies, and the efforts to bridge this critical financial divide.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 35 – September 2023

DEVELOPING STRATEGIES FOR NATURAL CATASTROPHES

Interview: Marie Scholer by Jennifer Baker

		Marie Scholer – is chairman of the NatCat Expert Network since 2019. She has written consultation papers on sustainability. She has also developed the Protection Gap Dashboard of EIOPA and is also currently (re)assessing the parameters of the standard formula for NatCat.

Can you explain what the goals are of the EIOPA Expert Network on Catastrophe Risk? How does the network intend to achieve these goals? ‘Firstly, the network is composed of experts on natural catastrophes from industry, model vendors, academics and also other EU institutions. And the main goal of this network is to contribute to the EIOPA initiative regarding modelling and mitigation of natural catastrophe risks, as well as climate change…

Read the full article here.

 

A video of this interview is now available on actuview:

• Public (short) version (access to all)
• Full version (for actuview user)

 

Disclaimer:

This interview represents the opinion of the interviewee, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 35 – September 2023

Issue 35, September 2023 of The European Actuary has been published.

 

The theme of this issue is: Catastrophe risks

Featured Articles:

• Developing strategies for natural catastrophes | Interview with Marie Scholer
• Bridging the insurance gap a global challenge for financial resilience | by Monica Lis
• Some thoughts on Nat Cat and insurance policies | by Michael Schüte and Dorothea Diers
• Why natural catastrophe frequency-severity adjustments underestimate tail risks from climate change | by Cameron Rye
• AAE position on IORP II directive | by Tatiana Bitunska and Philip Shier
• EAD 2023  – a successful European Actuarial Day, with opportunities for improvement | by EAD 2023 Organising Team
• Catastrophe| column by Loudina Erasmus

 

Please visit the webpage of The European Actuary on the AAE website for prior issues or further details.