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Climate Risk Course Launched For Insurance & Financial Service Sectors

19-Dec-2022 11:40:55 / by The Insurance Institute

The Insurance Institute

A new course focusing on climate risk has been launched for financial services and insurance professionals.

The Certificate in Climate Risk, run by the Insurance Institute, aims to provide those working in insurance or financial services with the knowledge and understanding of how their sectors will function during the transition to a sustainable, low carbon world.

Climate Risk Group

Pictured at the formal launch of the Certificate in Climate Risk were Anne McGlynn, Climate Risk Programme Manager, The Insurance Institute; Tim O’Hanrahan, Central Bank; Paula Hodson, Director of Education and Development, The Insurance Institute; Domhnall Cullinan, Central Bank; Rosa Whitfield, Head of Teaching and Learning, The Insurance Institute & Dr James Fitton, KPMG.
 

Among the specific outcomes of the course, it will help participants to:

  • Identify the key factors that underpin the science of climate change and global warming.
  • Evaluate the current and future impacts of climate change on economies and the financial services sector.
  • Outline how physical, transition, and liability risks impact financial institutions and explore their wider social impacts.
  • Determine why climate risk is a priority for central banks and financial regulators, and outline current EU legislation and its role with regard to climate risk measurement and disclosure.
  • Outline the role of data in measuring climate risk. 
  • Discuss the role of scenario analysis and climate risk modelling for insurance firms.
  • Demonstrate the ability to embed climate risk in organisational culture.
  • Evaluate commercial and risk mitigation opportunities for the financial services sector from the transition to a sustainable, low-carbon world.

 

Speaking about the new programme, Dermot Murray, Chief Executive Officer of the Insurance Institute said, “Climate Risk is such a fundamental challenge for society. All sectors will be impacted and that includes the insurance and financial services industries. These areas are vitally important to the wider economy. We realise that if the whole economy needs to become more sustainable then our sector will need to be prepared for that evolution so that we can help enable that transition to take place.”

 

“The nature of insurance is to support society to manage and take risk. That makes it an essential component in dealing with the climate risk challenges this planet and this country are facing. Through this course we want to ensure that our members are fully informed regarding climate risk issues, how they impact our customers and industry and what our sector needs to do to assist with the move towards a more sustainable and low carbon world,” Mr. Murray said.

 

The course is delivered over a period of 14 weeks and will begin in February 2023. It is supported by Sustainable Finance Ireland.

 

The creation of the course has also been greeted positively by the Central Bank. “The impacts of climate change are far reaching, non-linear and whilst affected by the actions of today, will occur over a much longer period than typical business planning time horizons,” said Domhnall Cullinan, Director of Insurance Supervision with the Central Bank of Ireland. “The insurance industry will need to be ambitious in its consideration of climate change and those that have participated in the Insurance Institute’s Certificate in Climate Risk will be able to help their firms and the insurance industry achieve those ambitions,” Mr. Cullinan concluded.

 

For more information on the Certificate in Climate Risk, Click Here