Tue 10 Mar 2026 - ‘Parasol Lost – Recovery plan needed’ is the fifth in the series of IFoA-led collaborative reports with Earth system scientists, in which we apply an actuarial lens to the climate and nature challenges.
An actuarial review of key climate change assumptions shows we may have seriously underestimated the rate of warming as well as the related economic impacts. Unless we rapidly change course, climate damages will start to impact growth and future prosperity.
The parallels between the risk management failure of the global financial crisis and inaction on the major systemic risk posed by climate change are clear. Both feature an over reliance on benign risk model results and a failure to understand systemic risk.
However, despite these stark findings, the reports strikes a hopeful tone. It calls for a Planetary Solvency recovery plan to stabilise the climate and support humanity to find its balance with nature to avoid the catastrophic risks that become more likely without a change of course. It will be overwhelmingly positive economically to execute this plan.
As well as covering the key findings from the paper, the lead author and IFoA Planetary Solvency lead Sandy Trust, will also ask how actuaries should develop their skillsets to remain relevant in the volatile times we are living in.
Please note, KSS is an initiative of the Scottish Board but events themselves are organised ‘by members for members’. This means that if you are an attendee at a KSS event or contact of KSS your data is held by KSS volunteers and event organisers independently of the IFoA.
Sandy is the past chair of the Institute and Faculty of Actuaries Sustainability Board and is a member of the International Actuarial Association’s Climate Change and Sustainability Committee. He is the lead author of a series of collaborative research reports that bring together science and risk, seeking to improve policymaker-level risk management.
The latest report, ‘Parasol Lost: Recovery plan needed’, calls for a Planetary Solvency recovery plan to stabilise the climate and support humanity to find its balance with nature.
Sandy’s personal mission is to help reconnect finance and the economy to nature and the biosphere to deliver a future worth living in.
He works with investors and advises a number of regulatory and policymaker groups on these topics.
EY
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