Extreme weather prompts APRA to consider climate change


The frequency of extreme high temperatures during Autumn 2019 was 96% above the long-term average, according to the Australian Actuaries Climate Index, forcing organisations such as the Australian Prudential and Regulatory Authority (APRA) to consider how they are going to handle climate change.
The quarterly data from the Actuaries Institute found Autumn was the second-most extreme in the number of hot days ever recorded in the three months from March. Only Autumn 2016 showed more extreme temperatures.
The index shows changes in frequency, rate of occurrence, extreme high and low temperature, heavy precipitation, dry days, strong winds and changes in sea levels.
Extreme changes in weather posed the greatest risk to people, communities, environment and the economy as well as increased the risk of bushfires.
Actuaries Institute chief executive, Elayne Grace, said: “There is a growing urgency to understand the occurrence of extremes and the impacts of climate change on businesses and communities.
"We have seen a strong rise in the momentum of interest from various parties, including from Australia's regulators, the Australian Prudential Regulation Authority and the Reserve Bank of Australia."
Actuaries Institute president Nicolette Rubinsztein said the quarterly data allowed regulators, companies, scientists and others to monitor trends in extremes, based on the data from weather bureau stations.
"It is crucial to build the Index over time, so we can assess change based on data and objectively contribute to this important public policy issue," she said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.