Pablo Mongelos García, General Manager at Seguros Lagun Aro, shares his vision on climate risk and decarbonization and how they face these crucial challenges.
What are the biggest risks and challenges facing your organization in managing climate change on the asset (investments) side and the liability (policies) side?
As in the whole sector, the great challenge is the absence of data. This is a new element to be introduced in the management of the company, and there is a lack of the information and knowledge that must be integrated into daily management. Along the same lines, it is complex to measure the future impact of climate change on claims. The exposure to climate risk of the insurance portfolio is greater in the non-life business because of the physical risk of extreme weather events. However, the company has the capacity of adjusting the premiums since this is yearly renewable term insurance.
