Climate Risk Disclosure - The Dialogue Podcast

Reading time: 2 mins
In this first episode of the Dialogue Podcast series, Andrew Doughman questions Sharanjit Paddam, Principal at Deloitte, on his Dialogue thought leadership paper 'Climate Risk Disclosure, Financial Institutions Feel the Heat'.

Climate change raises real risks and opportunities for financial institutions which need to be identified, managed and disclosed. This Dialogue paper, co-authored in November last year by Sharanjt and Stephanie Wong, argues that Australian institutions are ill-prepared for the impact of rising temperatures and extreme weather events and the effects these will have on their balance sheets.
 
“I think there's an opportunity to renew your business in a really good way. And to build a capability that talks about, how do we manage risks across the organisation, and how do we think about opportunities?” Sharanjit says in the podcast.

The impact across industries of rising temperatures and an increase in floods, bush fires and cyclones, is likely to result in acute physical risk to property. Sharanjit talks about “the east coast low we had in Sydney back in May 2016... where we saw a number of backyards of properties at Collaroy disappear into the sea”. 

 
First home buyers and those who have investment properties or are looking to invest in a property will need to be aware of climate risk and how this can affect their home insurance premiums, he says.
 
"When climate change comes, it also triggers issues about affordability, if we keep pushing premiums up. When are people going to no longer afford to pay for the premiums? It increases issues about insurability. Are these risks actually insurable anymore? And it increases reputational losses for insurers. And it could also lead to regulatory intervention."

Listen in to find out how financial institutions can identify and create solutions for climate risks, and what should they be doing now to be ahead of the curve and avoid the heat.

 

Listen to 'The Dialogue - Climate Risk Disclosure' on Spreaker.

Download Transcript here.

Access the Paper and Media Release here.

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About the authors

Sharanjit Paddam

Sharanjit is a Principal at Deloitte Actuaries & Consultants. He has over twenty years’ experience in general insurance and accident compensation. He has acted as Appointed Actuary to a number of insurers and reinsurers, and specialises in natural disasters and measuring environmental and social impact. He is an editor of Actuaries.Digital and convenes the Actuaries Institute's Climate Change Working Group.

Andrew Doughman

Andrew is a Reinsurance Underwriter and Client Manager at Hannover Re, the 3rd largest Reinsurer both in Australia and globally. Andrew is responsible for servicing clients across Australia and New Zealand for all casualty lines including Public and Products Liability, PIDO, Medical Malpractice, Workers Compensation and CTP. Prior to Hannover Re, Andrew worked in General Insurance consulting as a Senior Manager for EY as well as in Product Management for the Workers Compensation portfolio at Suncorp. Andrew has deep expertise in both the Product Management side as well as dealing with various stakeholders (including regulators) across the Workers Compensation and CTP classes.

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