IAA Releases a Discussion Paper on Risks to Water Resources

The International Actuarial Association (IAA) is pleased to announce the publication of the discussion paper on Risks to Water Resources developed by its Resource and Environment Working Group.

Since water resources are critical for human survival, even short-term disruptions in the supply of water can have potentially devastating consequences, including adverse impacts on financial security systems.

The main purpose of this paper is to start a discussion on water resource risk among actuaries before addressing the broader scientific and public policy communities. We believe that actuaries need to be informed about how water resource risks affect a wide range of perils commonly insured, including life, health, property and agriculture.

The paper illustrates the central risks by considering three representative systems in New York City, Mexico City and India. It goes on to illustrate best-practice actuarial risk management techniques, applied in a context outside the traditional actuarial domain. The paper employs what we believe to be best-practice actuarial risk management techniques, applied in a context outside the traditional actuarial domain. It may therefore serve as a useful educational tool, and a showcase for the profession’s risk management capabilities.

The paper is available on the IAA website under PUBLICATIONS/PAPERS.

The Resource and Environment Working Group will host a webinar on 14 December 2020 at 7:00 AM (EST) to present this paper. To register for the webinar, please click here.

This activity advances the IAA’s mission and strategic objectives to provide key supranational institutions with actuarial expertise on issues of relevance in global forums and to promote the advancement of scientific knowledge and skills of the actuarial profession.

To learn more about the work of the IAA on this topic, contact the Director of Technical Activities at the IAA Secretariat.