Interest rates in a changing climate

It's a deceptively simple question: how could climate change affect interest rates? 

Climate change is often discussed in terms of its impact on assets, liabilities and financial resilience. Yet less attention is given to how it could affect interest rates, one of the core assumptions underpinning actuarial work.

This webinar will explore how climate change could influence the key drivers of interest rates, including economic growth, inflation, investment and government borrowing, and what this could mean for actuarial practice. The session will draw on research from the IFoA working party report, 'Interest rates in a changing climate 2026' (PDF, 1 MB)

What you will learn 

During this webinar, you'll:

• Understand the key drivers of long-term interest rates and how climate change could influence them.
• Explore the competing forces that may place upward or downward pressure on future interest rates.
• Learn how climate scenarios developed by organisations such as the Network for Greening the Financial System and the Bank of England incorporate interest rate assumptions.
• Hear insights from practitioners working across investment, insurance and climate-related disciplines.
• Consider the implications for actuarial modelling, risk management, assumption setting and scenario analysis.

Why attend? 

Climate change is often discussed in terms of its direct impact on assets, liabilities and financial resilience. This webinar explores a less widely understood question: how it could affect one of the core assumptions underpinning actuarial work.

Join us to discuss the findings, challenge assumptions and explore the implications for the profession.

Speakers

Effect of Climate Change on Long-term Interest Rates Working Party:

• Sara Joslin (event chair)
• Alex Darsley (chair of the working party)
• Sarah Keighley
• Mayukh Gayen