This project aims for students to apply actuarial science principles to the analysis of climate data, focusing on identifying and quantifying the risks associated with climate change and extreme weather events. The objective is to develop a comprehensive risk assessment model that can be used by insurance companies, governments, and other stakeholders to make informed decisions regarding climate risk mitigation and adaptation strategies. By the end of the project, students will have learned how to manipulate large datasets, apply statistical and actuarial models to real-world scenarios, and communicate complex risk assessments in an accessible format, bridging the gap between actuarial science and climate change mitigation efforts.

Project activities and deliverables:

Climate Data Analysis and Risk Identification

• Objective: Analyze historical climate data to identify patterns, trends, and anomalies related to extreme weather events and their impacts.
• Deliverable: A comprehensive report detailing the data analysis process, key findings, and initial identification of potential risks associated with climate change.
• Filename for Deliverable: Climate_Data_Analysis_Report.pdf

Risk Quantification and Modeling

• Objective: Develop statistical and actuarial models to quantify the risks identified in Task 1, taking into consideration the frequency and severity of events, as well as potential economic impacts.
• Deliverable: A detailed methodology report on the risk quantification process, including model descriptions, assumptions, limitations, and results.
• Filename for Deliverable: Risk_Quantification_Models_Report.pdf

Risk Mitigation and Adaptation Strategy Recommendations

• Objective: Based on the risk assessments, propose strategies for mitigating and adapting to the identified risks, focusing on insurance products, policy recommendations, and other financial instruments.
• Deliverable: A strategic recommendations report that outlines actionable mitigation and adaptation strategies, supported by the risk quantification models developed in Task 2.
• Filename for Deliverable: Risk_Mitigation_Adaptation_Strategies.pdf

Support will be provided through access to climate datasets and actuarial software tools (if requested). Regular feedback sessions will facilitate continuous improvement and deeper understanding of the complex interplay between climate change and actuarial risks.