The IFoA’s Life Climate Change Working Party has a wide remit to help actuaries working in the life insurance industry understand climate change and the risks and opportunities presented by climate change.
As part of this, the assets workstream lists below a selection of relevant introductory materials covering key foundational concepts that we recommend for those looking to gain core knowledge of the asset-related issues:
A Practical Guide to Climate Change for Life actuaries
IFoA guide for life actuaries, including an explanation of how regulation and other policy can lead to material portfolio risk.
ESG strategies signal progress for people and the planet
An article summarising usage of ESG factors in asset management and the difficulties in finding adequate data.
Event Highlights: Is ESG Sustainable? – Black Sun Plc
Summary of the distinction between ‘ESG’ and ‘sustainability’ – an important distinction to understand when considering the interaction of climate change and life insurance companies’ asset portfolios.
ESG considerations in the insurance industry
Article outlining the ESG investment process and implications on product design for life insurance products.
What is ESG Investing? MSCI Ratings Focus on Corporate Bottom Line (bloomberg.com)
Opinion piece on the dangers of over-reliance on “ESG” in the fight against the climate crisis.
Fiduciary: A new duty (portfolio-institutional.co.uk)
Summary on the evolution of the term ‘fiduciary duty’ due to sustainability challenges. It is increasingly important that life companies take a view on the boundaries of what they consider to be their fiduciary duties.
What’s hindering institutions from sustainable investing | Investment Executive
Article outlining several of the main blockers to sustainable investing. Life companies will face a variety of difficulties, including those listed in the article. Life companies may wish to cooperate with other asset owners to address these issues with policy makers through collaborative action, e.g. via IIGCC or NZAOA.
How to make sustainable finance real for consumers
Article outlining actions financial institutions may wish to employ to support retail investors’ journey in sustainable finance. Although addressed to the European Commission, the contents remains useful to UK life insurers looking to support policyholder interest in sustainability.
Is ethical investing too difficult?
Summary of some of the key reasons policyholders may find it difficult to invest ethically. (Note there is a distinction between ethical and sustainable investing, with ethical investing often focused on negative screening/exclusion policies and divestments.).
Article on assessing the ‘true value’ of companies.
