The International Social Security Association (ISSA) has contributed to a new report on actuarial considerations related to climate risks and social security, a topic of increasing importance.
The report Actuarial Considerations Around Climate-Related Risks on Social Security was prepared by the International Actuarial Association (IAA) in collaboration with the ISSA and its Technical Commission on Statistical, Actuarial and Financial Studies.
It examines the impact of climate-related risks on social security, with a focus on actuarial perspectives. These risks disrupt demographic, economic and investment assumptions that are critical for social security analysis. This represents a challenge for the profession and for social security, which depends on accurate projections to inform decision making.
Building knowledge around quantifying climate scenarios is therefore of great importance, as improved data and scenario exploration can enhance economic and financial analyses. The report provides practical examples and methods that can be used by actuaries to integrate climate risk assumptions in their work, which contributes to sound and solid decision making in social security.
A preliminary version of this report was already discussed at the 21st ISSA International Conference of Social Security Actuaries, Statisticians and Investment Specialists (ACT 2023), which took place in Mexico in December 2023. To present the final report, the Climate Risk Task Force of the IAA is planning to host webinar with the contribution of ISSA later in the year, and this event will also be published on the ISSA website and available for ISSA members.