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UK regulators set up climate taskforce to help actuaries

UK regulators set up climate taskforce to help actuaries
UK regulators set up climate taskforce to help actuaries   -   Copyright  Thomson Reuters 2021
By Reuters

By Simon Jessop

LONDON – UK regulators said on Wednesday they would form a taskforce to publish a report on the science of climate change to help actuaries do a better job of assessing the risks posed by global warming.

The decision by the executive of the Joint Forum on Actuarial Regulation comes ahead of global climate talks in Scotland, starting Oct. 31, and follows growing concern about the degree to which company accounts reflect climate risks.

Established in 2013, JFAR includes the Financial Reporting Council, the Institute and Faculty of Actuaries, the Financial Conduct Authority, The Pensions Regulator, and the Prudential Regulation Authority.

In a statement, JFAR said the taskforce would investigate, report and publish a “deep dive” on the subject, which it hopes will lead to “greater actuarial engagement on climate change in all aspects of actuarial work”.

“Most actuaries are well aware that something is happening to the climate but are less familiar with the specifics of the science,” JFAR said in a statement.

“Bringing to life the specifics of the science of climate change in a format suitable for actuaries should lead to greater actuarial engagement on climate change.”

JFAR exists to coordinate “the identification and analysis of public interest risks to which actuarial work is relevant”, it said. Publication of the report is planned for the second quarter of 2022.