Tag Archives: Eoin Stack

Regulating climate-related risks

The social and economic changes caused by the COVID-19 pandemic have had a significant impact on our lives over the course of 2020. It has been argued, though, that the changes we have seen over 2020 pale in comparison to the expected impact that climate change will have on our societies and economies. Some predict that we have just 10 years to act on climate change before the damage to the planet is irreversible.  

With this in mind, regulators are looking to the financial services industry to better understand the challenges posed by climate risk, including a transition to a low-carbon economy. This briefing note by Milliman’s Sinéad ClarkeOrlaith Lehane and Eóin Stack provides a beginner’s guide to climate risk for Irish insurers. It includes a high-level introduction to climate-related risks and information on what the Central Bank of Ireland and European Insurance and Occupational Pensions Authority are currently doing in relation to climate risk in addition to an overview of the approach taken by regulators in the UK. 

Enhancing ERM frameworks based on learned lessons from COVID-19 pandemic

COVID-19 has illuminated the wide-ranging impact that emerging risks can have on insurers across the globe. It has focussed attention on a grey area that exists in recognising when an emerging risk has fully “emerged” and how it should be treated. It would seem logical that once an emerging risk is realised, its subsequent monitoring and management should fall under a pre-existing risk management framework.

In this briefing note, Milliman professionals discuss how traditional enterprise risk management (ERM) frameworks may not fully capture the complexity of an emerging risk event, and reflect on some lessons that can be learned from the COVID-19 pandemic.