To the Actuary Overwhelmed by Climate Risk Guidance: Start Here
23 February 2026
2.3 min read
Much like rising sea levels, the pressure on South African insurers to address climate‑related risk is steadily climbing. Even if transition risks haven’t yet dented asset values, or physical risks haven’t disrupted policyholder experience, there’s a growing industry sentiment – life insurers included – that “we need to start doing something”.
This urgency is fuelled by the Prudential Authority’s commitment to embedding climate risk into financial services. Two guidance notes have already been issued for insurers, and while they aren’t mandatory yet, proactive companies are preparing: both to stay ahead of compliance and to strengthen their own risk management. Others are feeling the push from group‑level sustainability and ESG programmes.
Across conversations with clients, one theme stands out: overwhelm. Actuaries are asking where to begin, how to apply the guidance practically, and how to demonstrate compliance.
Two Practical Starting Points
1. Don’t panic.
Climate risk management is not expected to be perfect from day one. Think of it as a gradual, iterative process. Start small, refine as you go, and build confidence over time.
2. Run a materiality assessment workshop[1].
Much of the Prudential Authority’s guidance hinges on materiality. Identifying which climate‑related risks are likely to be material to your business in the short and long term gives you a clear roadmap for next steps.
How Insight Can Help
At Insight, we’ve spent years developing expertise, tools, and frameworks to guide insurers through these early stages. Our approach helps you cut through the overwhelm, focus on what matters, and achieve compliance in a cost‑effective, efficient way.
If you’d like to turn regulatory pressure into a clear, practical plan, reach out to me at pamelah@insight.co.za.
Together, we can build a climate risk strategy that’s both compliant and sustainable.
[1] An example of how this may be done is included in the ASSA Climate Change Committee’s framework to assess and quantify the direct impacts of climate change on the mortality and morbidity of South African insured lives. This approach can easily be generalised to cover other risks.
Get an email whenever we publish a new thought piece
At the 2025 ASSA Convention, we polled over 300 actuaries on what they believed was the greatest challenge currently facing their team. While there was a lot of variation in
1.1 min read
The surveys aimed to track the journey of IFRS 17 implementation and industry thinking on topics where the Standard allows discretion, as well as understand what actuaries are focusing on
3.4 min read
Meet our experts
Author
More Insights
Focused Thought Pieces
- By Pamela Hellig