Climate Change Scenarios: Application, Evolution, and Reporting
21 October 2025 | 9:30-13:00 CEST
Climate Risk scenarios are commonly used in the insurance industry for stress testing, but interpreting and communicating results is often challenging, given strong limitations and complex assumptions. This session will provide practical guidance on stress testing application in the ORSA context, focusing on financial risks, and provide context and foundations necessary in order to communicate and interpret the results. We will discuss key evolutions in recent years with a particular emphasis on NGFS scenarios and the modelling of physical risks.
The session will be based around a case study for a generic insurer, where we calculate impacts on the insurer’s capital position under different climate change scenarios, thereby illustrating the practical elements of stress testing. In this context, we will specifically talk about: Key steps to practical implementation of stress tests, models for key financial variables relevant for insurance stress testing (e.g. interest rates, credit spreads), NGFS scenarios and their recent evolution, impact of scenario updates, modelling of physical risks, as well as key limitations and considerations for reporting.
Early-bird discount is available for bookings made by 9 September 2025.
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