Actuaries warn that the global economy could experience a devastating loss of up to 50% of GDP between 2070 and 2090 due to climate shocks, including extreme weather events, rising sea levels, and disruptions in food and water supply. A report by the International Actuarial Association (IAA) highlights that industries such as agriculture, tourism, and infrastructure are particularly vulnerable to climate-related disruptions, with the effects magnified by the increasing frequency and severity of natural disasters. Furthermore, climate change could lead to significant economic inequality, as poorer countries and regions, particularly in the Global South, will be disproportionately affected, worsening poverty and exacerbating global disparities.
The report emphasizes the need for urgent action to mitigate climate risks, such as investing in sustainable infrastructure, transitioning to renewable energy, and improving disaster preparedness. Failure to address these risks could lead to long-term global instability, with severe economic and social consequences. Actuaries stress the importance of integrating climate risk into financial planning and policy decisions, as well as accelerating efforts to reduce greenhouse gas emissions. They warn that without comprehensive measures, the predicted economic losses could far exceed the costs of immediate climate action, leaving the global economy severely compromised in the second half of the century. More