Log in / My SOA

Risk Management and Climate Risk

Background and Purpose

Climate-related risks, including those linked to climate change, can significantly impact the operational and financial performance of the institutions that actuaries serve. Looking ahead, these risks can lead to major effects on mortality, morbidity, property damage, liability, and asset values. Therefore, actuaries and other risk managers dealing with risks need to address these risks in a systematic and comprehensive manner.

Climate risk is complex, encompassing a wide range of damages and losses linked to climate and weather events, such as storms, wildfires, floods, heatwaves, and effects on food and water quality. Therefore, recognizing and integrating these risks into regular management practices can be challenging.

In addition, both expected and unanticipated effects may be considered when adapting existing processes, and mitigating (reducing greenhouse gas emissions) may be involved. Educating key stakeholders, including policyholders, staff, and those involved in corporate governance, may also be relevant.

Key steps in the risk management process include identifying and quantifying the costs involved. These can be performed either explicitly or implicitly in combination with other risks. The question of the extent of effort needed for estimating and projecting these risks can be significant.

This Call for Essays aims to supply actuaries and others with ideas and methods for identifying, quantifying, reporting, and managing the financial impacts of these risks. In addition, reporting requirements—whether for regulators or investors—can enhance understanding of the underlying conditions leading to these risks, which can assist in evaluating them, including a framework for decision-making and suggestions for future research.

Topics of Interest

The SOA Research Institute (SOA) invites essay submissions on how climate risks can be integrated into the risk management processes used by actuaries and other risk managers. This call has been intentionally kept broad to encourage diverse perspectives and approaches. Contributors may choose to explore one or more of the sample topics listed below or propose alternative subjects that align with the overall theme and objectives of this Call. The examples provided are illustrative and neither comprehensive nor exhaustive.

Sample topics include:

  • A typology describing the range of climate and weather-related risks that could be considered.

  • A framework for evaluating actuarial and risk management of these risks.

  • How these risks could be managed by a standard or specialized risk management process of an entity, such as an insurance company, pension program, or other risk-bearing organization?

  • Case studies on implemented processes, programs, and initiatives.

  • For insurance companies, how could these risks be incorporated into an actuary’s ORSA (Own Risk and Solvency Assessment) process? Or for other reporting purpose?

  • The application of AI in decision-making processes

  • Discussions regarding quantitative techniques for evaluating these risks.

  • Practical applications in actuarial work.

Although this Call for Essays is primarily focused on climate-related risks, it can also cover the management of risks from other catastrophes or disasters, such as earthquakes and pandemics.

Rules for Essay Submission

Timeline

The deadline for submissions is January 22, 2026. Essays will be published as soon as possible in a formal collection.

Length and Instructions for Submission

Essays must be submitted in English with a desired length of between 500 to 2,500 words in Word format. Except for citing quotations or controversial information, formal or extensive footnoting is not required. Essays must comply with the SOA's antitrust guidelines. Essays that contain any overt political statements, commercial content, inflammatory tone, and other inappropriate material will not be accepted for publication.

At the beginning of the essay, please provide the following information about the author: name, credentials or designations (if appropriate), email address, phone number, and either personal street address or title, company/organization name, and company/organization address. Essays accepted for publication will show the author’s name but no further contact information.

Please submit your essay via email to Research-CC@soa.org with the subject line “Risk Management and Climate Risk CFE.”

Awards

Up to $5,855 USD has been allocated to awards for this call for essays. The review committee will select the leading essays and determine how to allocate the award money among them. Consideration will be given to creativity, originality and the extent to which an idea might help promote further thought in this area. In exchange for award money, selected authors will be required to assign all copyrights in their essays to the Society of Actuaries Research Institute.

Authors are ineligible for awards if an essay is based on an SOA Research Institute-sponsored and funded research study conducted by the author. However, authors are welcome to submit such essays for publication consideration.

Publication and Presentation

The SOA will publish and disseminate the essays selected for publication in an electronic format. Essays may also be presented at an SOA meeting, webcast, or other professional development event.

In addition, other venues for publication or presentation of the ideas outside of the SOA may be considered. It is hoped that publication of the collected essays will further knowledge and stimulate discussion as well as promote future efforts in this area.

Rights Granted

By submitting an essay for consideration, the essay author(s) is granting to the Society of Actuaries Research Institute an unlimited license to print or republish their essay with proper attribution given to the author(s).

Questions

Please direct any questions regarding this Call for Essays to Research-CC@soa.org with the subject line “Risk Management and Climate Risk CFE.”