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Normative approach to risk management for insurers

Private insurance is a key component of strategies to manage physical climate change impacts, but existing scenarios used by insurers are not well suited to making business decisions. We call for a complementary normative approach, based on business objectives, that delivers actionable information to decision-makers.

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Fig. 1: Schematic of the probability of exceeding a pre-defined impact threshold evolving over time under climate change.
Fig. 2: Visualizing impact threshold metrics.


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Correspondence to Cameron J. Rye.

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Competing interests

C.J.R., J.A.B. and A.M. are employees of MS Amlin — a global speciality insurer and reinsurer that is part of the MS&AD Insurance Group. C.J.R., J.A.B. and A.M. have contributed to this commentary in their own capacity; any views expressed in this Comment are their own and not those of MS Amlin or MS&AD.

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Rye, C.J., Boyd, J.A. & Mitchell, A. Normative approach to risk management for insurers. Nat. Clim. Chang. 11, 460–463 (2021).

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