Last February, the students of the Master's Degree in Actuarial and Financial Sciences had the opportunity to receive a visit from MAPFRE.

The speaker was Souad Ramy, a former student of the Master's Degree program and currently a member of Mapfre's Corporate Actuarial Area (Sustainability and Climate Change).

Souad presented the topic by introducing the general concept of Sustainability, which first appeared in 1987 in the Brundtland Report and encompasses three parts: the environmental aspect (with the risks of climate change), the social aspect (with insurance), and the governmental aspect (with the 2030 Agenda). All of this was explained with a focus on anthropogenic impacts on sustainability: temperatures, floods, droughts, etc, and how these risks can be mitigated to create a better future (balanced development between the economy, the environment, and society).

The discussion also focused on how sustainability has led to the creation of new insurance policies to cover current needs. This directly affects actuaries, as they must be professionals capable of measuring sustainability both quantitatively (risk measurement, model review, etc.) and qualitatively (sustainability reports, reducing the protection gap, etc.).

In addition, the Actuarial Climate Index was described, adding a historical perspective from countries such as the United States and Canada, which were the first to develop these sustainability models. They consider five components: temperature, dry days, wind gusts, precipitation, and sea level. It was emphasized that Spain is the first country in the European Union to create its own model to predict events and minimize risks. From this, several types of risks that actuaries must consider were identified: Physical risks: arising from climate change. Transition risks: arising from a social shift toward a low-carbon society. Liability risks: arising from increased litigation.

Finally, the discussion focused on how the insurance industry is moving toward sustainable insurance, how it also has regulations for reporting on what is being managed, and what steps companies should take to anticipate and minimize changes.

Finally, the floor was opened for questions, and attendees' concerns were addressed.