Certificate in Climate Risk Announced

By Stuart Klugman

In early 2023 the SOA will offer its latest certificate program: Climate Risk. The focus will be on measuring and managing climate risk with an emphasis on the role of actuaries. It is designed for actuaries (and others) in all practice areas and is modularized so that options are available for those who want a basic introduction and for those who want to delve deeply into applications. The program is being developed in collaboration with Milliman who will provide expertise in actuarial, financial, clinical, technical, and scientific aspects of climate risk.

To earn the certificate, six courses must be completed and an assessment passed. However, courses can be purchased individually. For example, those wanting a basic overview of climate risk may elect to stop after two courses. The following is a brief description of the content (which is subject to change as the courses are being finalized):

• Course 1 – Climate Risk Fundamentals: Definitions, ways to look at data, weather extremes, the Actuaries Climate Index, role of CO2 and greenhouse gas effects, economic and insured losses
• Course 2 – Climate Risk Data Sources: Data collection, worldwide sources, SOA tools, considerations, pitfalls, and capacity constraints
• Course 3 – Climate Risk Modeling: Use of past trends and recent observations, modeling of catastrophic events (e.g., tornado, hurricane, flood), forecasting extreme events, uncertainty in forecasts
• Course 4 – Actuarial Risk Analysis: Associating risk with loss variables, risk management, impact of adaptations and insurability, role of decarbonization
• Course 5 – Specialized Education: Candidates have a choice of applying the previous material to a specific practice area
  • Life Insurance
  • Health Insurance
  • Pensions
  • General Insurance
  • Investment/Finance
• Course 6 – Climate Risk Governance and Strategy: Transition risks, public and private approaches, regulation, affordability of insurance coverages

Watch your emails and the SOA website for more information as the launch date gets closer.

Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the editors, or the respective authors’ employers.

Stuart Klugman FSA, CERA, Ph.D. is senior staff fellow, Education, for the Society of Actuaries. He can be contacted at sklugman@soa.org.