Devastating floods in KwaZulu-Natal, droughts in the Western and Eastern Cape and considerable variability in water in Gauteng highlight the significant effects of climate change that South Africa is experiencing.

It is clear that climate risk has and is going to have a substantial impact on short-term insurers with an expected increase in weather related claims. Thus, it is not surprising that a climate risk scenario is becoming increasingly popular in ORSA scenarios. Additionally, many insurers are setting up specific committees to focus on climate risk. There is a lot to consider when it comes to climate risk beyond just an increase in expected claims and this presentation aims to provide some insight on this. The presentation will provide some real life stories and consider items such as regulatory risk (risk of not complying with climate change regulation), liability risk (increased claims for those who have experience loss/damage due to climate change) and transition risk. Transition risk covers a number of areas that insurers need to consider including transitioning of their investments to carbon conscious assets and potentially re-pricing their product for carbon heavy assets.

Practical outcomes for the audience:

1. Insight into the impact climate change is having on our country

2. Appreciation for the need for insurers to consider climate risk in their ORSA scenarios

3. Appreciation for the need to take climate risk seriously and consider the short-, medium- and long-term impacts that climate risk will have on their business

4. Insight into the other aspects of climate risk that should be considered and not only the physical risk