A 2o C World might be insurable. A 4o C World certainly would not be
On May 9th, 2017, the READI (Risk Management, Economic Sustainability and Actuarial Science Development in Indonesia) project held a workshop on “The Role of Actuaries in Assessing Risks Associated with Climate Change” in Jakarta, Indonesia. The READI project, which aims to support the development of Indonesia as a regional centre of excellence for actuarial science education, is funded by Global Affairs Canada, with co-funding provided by Manulife Indonesia and Sun Life Financial. The Government of Indonesia’s Financial Supervision Authority (Otoritas Jasa Keuangan) is the GoI counterpart. The University of Waterloo serves as the Canadian executing agency for the project.
The workshop, which hosted 200 participants, brought together representatives from the Society of Actuaries of Indonesia (PAI), the insurance industry, prominent Indonesian universities, various Government of Indonesia ministries, the Embassy of Canada, and international organizations to explore how actuaries, as specialists in risk management, can consider and assess the costs of climate change adaptation and mitigation and how to design financial products and packages to address climate change-related risks, and add value to fact-based policy decisions.
During the workshop opening, Mr. Isa Rachmatarwata (Staff Expert – Policy & Regulation for Financial Services & Capital Markets, Ministry of Finance) stressed the pivotal role of a pro-active actuarial profession which can provide benefits to Indonesia and the global community by developing creative approaches and new instruments for managing climate-related risks. Dr. Arief Wijaya (Forest and Climate Senior Manager - World Research Institute) summarized current knowledge regarding the status of climate change in Indonesia, then Mr. Yves Guerard (READI Actuarial Specialist) explained the important roles that actuaries can play in assessing related risks and financial impacts.
The workshop also served as a vehicle to launch the READI Actuarial Science Applied Research Fund (ASARF) which will support targeted actuarial science and risk management research. Ms. Fransisca M. Roeswita (General Secretary, PAI), moderated a lively panel discussion on the workshop theme with panelists comprising; Mr. Joannes Widjajanto (Corporate Actuary - PT. Asuransi Multi Artha Guna, TbK), Mr. Rianto A. Djojosugito (President, PAI) along with Dr. Arief Wijaya and Mr. Yves Guerard. The workshop served as an excellent platform for highlighting the importance of applying actuarial science tools and analysis to help address the significant economic impacts that climate change is likely to cause in the very near future.