Dependencies Between Climate Change and Health Insurance Risks

Climate change has clearly led to more extreme weather events in Europe in the last 20 years. This has a material impact on our actuarial work. The consequences in the non-life sector have been relatively well-studied. NatCat models for estimating extreme events have been available here for a long time. However, the situation is different in the area of life and health insurance. On one hand, several studies of global warming impacts upon mortality do exist for larger cities or countries. On the other hand, specific applications of such an analysis to an insurance portfolio are rare. The same applies to the health impacts of climate change and their effects on health insurance – such as accumulation of certain disease patterns, correlation with demographic development etc.
Therefore, we would like to take up these topics in our lecture and show how these climate-related impacts can be investigated and quantified. Firstly, we will present approaches, using which the correlations between weather events (triggered by climate change) and health insurance risks can be determined for a representative European health insurance portfolio. Secondly, we will quantify the implications for the case study insurance company under various climate change scenarios. For this purpose, essential input parameters will be derived and a simulation of relevant KPIs over the next decades will be carried out and interpreted.
Find the Q&A here: Q&A on 'Risks and Strategies to Improve Health Outcomes'