PRESENTATION: CLIMATE CHANGE AND PANDEMIC RISK: SYNERGIES AND OPPORTUNITIES FOR CRISIS RESPONSE AND RECOVERY
- What does the changing business landscape mean for sustainability at both clients and insurers?
- What new risks and opportunities have emerged as a result?
- What implications - positive or negative – could our pandemic responses hold for climate action?
- Understanding the similarities, the differences and the broader relationships between pandemics and climate risks
- What lessons can be learned from the current pandemic for climate change? And how might this influence our understanding of and approach to resiliency?
- How can we use the lessons from another correlated risk that had the ability to hit both the underwriting and assets side of the balance sheet simultaneously and in unpredictable, hard to model ways?
PANEL DISCUSSION: DIVERSE REGULATORY INITIATIVES FOR MANAGING THE FINANCIAL RISKS FROM CLIMATE CHANGE
- What is driving climate actions in firms? To what extent is regulation the main driving force?
- How do the priorities differ between regulatory bodies?
- What can we learn from regulatory initiatives outside Europe
PANEL DISCUSSION: DRIVING THE CONVERGENCE OF ESG INDICES AND CONSISTENT GLOBAL REPORTING STANDARDS – WHAT IS OUR END GOAL - DO WE KNOW WHAT GOOD LOOKS LIKE?
- Challenges with the current structure and implications for the market
- What is the current state of play and what impact is the divergence in approaches having?
- Different framework/approaches used by different firms to assess and score companies?
- What criteria are they using?
- Why do the outcomes vary so much?
- Current challenges with ESG data
- Availability issues
- Deviations between different data providers
- How do performance ESG ratings /metrics need to evolve?
- Current challenges and limitations of the EU taxonomy
- What would a richer, shaded taxonomy look like and how do we get there?
- What changes need to be made to capture a forward -looking picture?
- How far along are we in the journey to find an industry consensus on ESG metrics and methodologies and progress
- Overview of initiatives and progress to date
- What is the roadmap to standardised ESG indices and reporting standards?
- What is our end goal - do we know what good looks like?
- What would this mean for the industry?
- Measuring the real-world impact – "inside out" rather than "outside in."
Panellist: Tobias Buecheler, Head of Regulatory Affairs, Allianz SE
Panellist: Alex Hindson, Chief Risk & Sustainability Officer, Argo Group (subject to final confirmation)
PRESENTATION: INTEGRATING SUSTAINABILITY INTO UNDERWRITING: THE CHIEF UNDERWRITER'S PERSPECTIVE:
- Latest guidance on integrating sustainability into underwriting
- But how does it look in practice?
- Overcoming challenges – data, policies
- How are you reflecting a "transition strategy' within your underwriting practices that recognizes the many shades between brown and green?
- Approaching the challenge of addressing correlation of losses between liabilities and assets in the B/S.
- Where do you use judgement? Managing the dilemma of political expectations from stakeholders vs. internal technical fact based decision-making. Can you actually deliver on your ESG policy?
- Innovating for mitigation and transition of climate risk.
- Have you reassessed your approach/priorities amid Covid-19?
- SHARED INSIGHT: WHAT NEW PRODUCTS ARE YOU UNDERWRITING THAT REFLECT YOUR COMMITMENT TO ESG CRITERIA?
PRESENTATION: LEGAL LIABILITY: HOW WILL CLIMATE CHANGE IMPACT EXISTING CLIMATE POLICY WORDINGS AND HOW FIRMS CAN BEST MITIGATE THE RISK
- How do we think public perception and implicit political pressure may change the way that courts interpret insurance policies?
- Given that past contracts can't be changed and might be subject to legislation, what happens if the impact arises?
- How do we future proof insurance coverage against legal action?
- Mitigating for the risk of policy changes and shifts in market preferences- will assumptions we make now be valid in the future?
- Overview of on-going cases and the risk to insurers
PANEL DISCUSSION: MEETING THE CHALLENGE OF CLIMATE RISK REPORTING.
- What expectations on reporting requirements can we anticipate from the regulators and within what timelines?
- Evidencing to the regulators – how well positioned are we to respond and to provide a full return?
- Bringing climate reporting into line with TCFD recommendations
- Industry feedback and comparison of approaches
- Level of granularity
- What challenges have arisen?
- Challenges surrounding availability and quality of data
- What improvements are needed?
- What still needs to be done to create a consistent, realistic and comparable framework for climate disclosure? Should TCFD become a compulsory requirement? Flexible vs prescriptive approach from supervisors?
Panellist: Dr Bronwyn Claire, Senior Programme Manager, ClimateWise
University of Cambridge Institute for Sustainability Leadership
Panellist: Federico Waisman, Head of Analytics, Ariel Re
Panellist: Mr. Masaaki Nagamura, Fellow, General Manager International Initiatives, Corporate Planning Dept. Tokio Marine & Nichid, Fire Insurance Co. Ltd
PANEL DISCUSSION: HOW TO OPTIMISE INVESTMENT PORTFOLIOS TAKING CLIMATE CHANGE INTO ACCOUNT
- What in practice does an investment strategy look like that respects the net-zero targets?
- What steps are you taking to invest in the transition and how are you structuring a portfolio that acknowledges and reflects the "50 shades of green"?
- Future proofing the investment portfolio
- What steps are you taking to prioritise forward-looking investments in your portfolio that support long-term transition?
- In the absence of an industry standard, and given the limitations of the EU taxonomy, how are you capturing a forward-looking picture?
- How do you come up with your own view of what is and isn't green?
- How do you incorporate analysis on how future law and regulation may change and what subsequent implications this may have for assets?
- What changes need to happen to help move the industry in this direction?
- How far down the supply chain should you analyse and apply ESG criteria?
- What changes have insurers already made to their asset portfolios?
- How do you track progress on aligning your portfolio with the net-zero targets?
- To what extent do you allow activist and policyholder intervention to influence ESG investment criteria/decisions?
Panellist: Michèle Lacroix, Head of Group Investment Risk & Sustainability, Scor
INSURING FOSSIL FUELS OR INSURING OUR FUTURE?
Presentation of the 2020 scorecard on Insurance, Fossil fuels and Climate Change.
- What is new this year?
- Who talks, who acts, who doesn't?
- Will the coal momentum transfer to oil and gas?
- What to look out for in 2021!
Speaker: Lindsay Keenan, The Sunrise Project
AFTERNOON COFFEE BREAK
PANEL DISCUSSION: USE OF CLIMATE RELATED SCENARIO ANALYSIS TO DRIVE BUSINESS STRATEGY: HOW ARE FIRMS USING SCENARIO ANALYSIS TO IDENTIFY OPPORTUNITIES AND ADDRESS CLIMATE RELATED RISKS IN INVESTMENT AND UNDERWRITING?
- How is Regulation and SII driving the use of climate related scenario analysis – update on guidance
- Cross-functional stress and scenario testing. Both climate and pandemic significantly impact both the underwriting and assets side of the balance sheet simultaneously and in unpredictable, hard to model ways. Covid-19 has highlighted the need for stress and scenario tests to be a cross-functional effort.
- Business benefits and limitations from scenario testing
- Incorporating multi year scenario analysis into risk management strategy
- SHARED EXPEREINCES - where have firms been able to use outputs from scenario analysis exercises to inform business decisions and drive strategy?
Panellist: Ben Carr, Analytics and Capital Modelling Director, Aviva
Panellist: Sharanjit Paddam, Head of ESG Risk, QBE
Panellist: Laurent CLERC, Director for Research and Risk Analysis, l'Autorité de Contrôle Prudentiel et de Résolution (ACPR)
PANEL DISCUSSION: CLIMATE RISK MODELLING: HOW DO WE NOW MOVE TO THE NEXT LEVEL AND KEEP PACE WITH THE DYNAMIC NATURE OF CLIMATE RISK?
- What are the current challenges in assessing climate risk?
- Findings from the BoE stress tests.
- What are the goals and key areas of focus for climate modeling?
- To what extent is climate change and other changes in our environment already embedded in what we observe today? To what extent are current models able to accurately capture today's climate that has some climate change already crystalised in it?
- How do we move towards a more forward-looking approach?
- To what extent is historical data useful in calculating exposure to environmental risks?
- If that is the case how does climate modeling need to advance to keep pace with the dynamic nature of climate risk?
- Working to multiple time periods
- Taking long term trends and reflecting it in a short-term view
- Science and industry engagement: How can the scientific community and insurers better communicate? What do we need from the scientific community in order to take climate risk modeling to the next level??
Panellist: Giorgis Hadzilacos, Technical Specialist, Catastrophe Risk, Bank of England (subject to final confirmation)
Bente Sverdrup, Director of Sustainability, Gjensidige
Panellist: Thierry Corti, Senior Sustainability Manager, Swiss Re
Moderator: Federico Waisman, Head of Analytics, Ariel Re