actuaris.nl

The role of damage functions in assessing physical climate risks

Nieuws
07-07-2025
Emre Doruk Önal
Physical climate risks are emerging as the dominant threat to institutional investors, and their materialization will have critical implications for financial markets.

Because physical risks are both uncertain and interlinked, one hazard can trigger cascading consequences. To better assess their exposure, investors are increasingly relying on physical risk damage functions within climate scenario modeling frameworks, to estimate potential losses and manage climate risks more effectively across both short and longer-term investment horizons. These models help them to consider not only for the potential impacts if such risks materialize, but also for how financial markets might respond to changes in the perceived likelihood of these events.

Understanding physical risk damage functions

In a simple context, physical risk damage functions quantify the relationship between climate variables, such as temperature, and resulting economic or physical damages. Different assumptions can be made about how damages evolve with rising temperatures -for example, a linear relationship implies a steady, proportional increase in damages, while an exponential one suggests that damages accelerate rapidly as temperatures rise, reflecting growing vulnerability or compounding effects.

[....]

Gerelateerde vacatures

Geïnteresseerd in een carrière bij organisaties in ditzelfde vakgebied? Bekijk hieronder de gerelateerde vacatures en vind de perfecte match voor jou!
Achmea
4.664 - 6.578
Medior
Meerdere locaties
Als Actuaris Schade Bedrijven bij Achmea maak je letselanalyses en voorspelmodellen (herverzekering, extreem weer), stel je maandelijks technische voorzieningen vast en ontwikkel je dashboards voor resultaat- en verantwoordingssturing in een...
NN
5.933 - 7.910
Senior
Den Haag
As a Quantitative Developer at NN Group Risk Models & Analytics, you build and optimize risk systems and calculation engines, ensuring accurate, reliable and efficient risk calculations, delivering maintainable C#...
Top vacature
Arcturus
Marktconform
Senior
Utrecht
Als Senior Actuaris bij Arcturus vervul je zelfstandig de eerstelijns of tweedelijns actuariële functie bij verzekeraars en bespreek je je bevindingen rechtstreeks met bestuurders. Je leidt projecten rond Solvency II,...
Meer lezen
Top vacature
NN
5.933 - 9.449
Senior
The Hague
As a Risk Model Expert at NN Group you develop and enhance the internal risk model, covering credit, equity, longevity and persistency risks, and act as an internal risk consultant...