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Giampaolo Crenca AAE Vice-Chairperson |
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Frank Schiller AAE Board member |
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In its role representing its professional actuarial members, a key function of the Actuarial Association of Europe (AAE) is maintaining meaningful and productive dialogue with leading participants and European agencies handling policies relevant to our field.
The AAE is regularly in contact with the most influential stakeholders, and we have been able to come to the table for meetings with Insurance Europe, the European Insurance & Occupational Pensions Authority (EIOPA) and the European Commission’s DG FISMA. We are optimistic that our recent input is already making a meaningful impact, specifically in terms of climate matters and the review of Solvency II.
As a profession concerned with risk, we well understand that climate change and its associated consequences constitute unprecedented risks for the financial industries as well as for humanity. We are highlighting to stakeholders that actuaries are already fully involved in the process of considering sustainability in financial products, but also in understanding how liabilities and financing can help to manage climate risks. The Solvency II review offers an opportunity to explicitly encode these relationships and concretise the fact that the sector must play an important role in advancing climate-friendly transitions and mitigating climate risks.
As the framework within which the European insurance industry operates, Solvency II is very relevant to us. While it is still undergoing review by policymakers, in our discussions we have emphasised the priorities as we see them: the need to maintain what already works, to make changes which support the long-term nature of insurance business, and to ensure adequate consideration of sustainability and climate change issues.
The AAE is also addressing environmental issues more broadly. This subject is of enormous importance to our members, not least because insurance and pensions are fundamentally built on sustainability principles – safeguarding people and organisations against financial insecurity and catastrophic impacts. Alongside their function of managing future risks arising from climate change, insurance and pensions are also well-positioned to contribute effectively to much-needed structural transitions, for example by means of investment policy and transition project insurance. Ultimately actuaries have an important role to play in consultant public policy work as well as insurance and pension systems, ensuring that society is covered and the climate protection gap is minimized.
We are consistently working to ensure the actuarial voice is being heard where it matters, and are pleased to report that several focused follow-up meetings have already taken place. As such, our members can be confident that they continue to benefit from the AAE’s productive relationships and respected status.
Read the full AAE position on sustainability here.
Read the full AAE position on Solvency II here.
This blog is written on a personal title with the assistance of Yestrans.
3 May 2023
