This assessment reviews our improved knowledge since the SAR. However, it also identifies many areas in which greater understanding is still needed and suggests several challenges for the research community. These challenges can be summarized as follows.
Improve the transfer of knowledge from the scientific community studying climate change and weather forecasting to the financial services community. There clearly is a need for better understanding of how extreme weather events that are important to financial service firms could be affected by climate change. New knowledge should be communicated to the financial community and society for practical use. There is a specific need to:
Advance the understanding of the relative global and regional vulnerability and adaptability of insurance and other financial services to climate change. The trend in losses from extreme weather events has raised questions about the insurance sector's vulnerability to climate change in some respects, although as a whole the industry could be quite resilient. Even less is known about the relative vulnerability or resiliency of other segments of the financial services sector. A more definitive assessment of the industry's strengths and weaknesses in the face of climate change is necessary, with specific needs to:
Explore the role of the financial services sector in dealing with risks to society from climate change. As intermediaries and risk experts, the financial services sector could play a positive role in efforts to deal with the risks of climate change. The sector also could play an important role in identifying potential synergies and conflicts regarding funding for adaptation and mitigation measures. Work is needed to:
Explore the range of possible financing arrangements to cover the cost of adapting to climate change:
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