Parasol Lost – new climate risk report from the Institute of Actuaries

The Institute and Faculty of Actuaries (IFoA) has just released its latest climate risk report in partnership with the University of Exeter, warning of faster than expected global temperature increases.

The following text is from their distribution list email:

“Parasol Lost – Recovery plan needed is the IFoA’s fifth report in collaboration with climate scientists. The report warns that global temperatures are accelerating faster than predicted, driven by a loss of ‘aerosol cooling’, a hidden sunshade effect created by air pollution which has offset around 0.5°C of warming. This hidden sunshade is now receding as pollution is being cut down, particularly by shipping regulations.

The report warns that, without action, global warming is now likely to reach 2°C before 2050, a level associated with catastrophic impacts on societies and economies worldwide, with major disruption to water and food systems, migration, and human health.

This raises the risk of climate-driven inflation, financial shocks, and the withdrawal of insurance from high–risk areas much sooner than many expect which, in turn, increases the chance of widespread financial instability and ‘Planetary Insolvency’ – the risk of societal and economic collapse from the loss of nature’s critical support systems.”

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contact details: policy@actuaries.org.uk.

Further information is available via the IFoA website.

https://actuaries.org.uk/news-and-media-releases/news-articles/2026/jan/14-jan-26-parasol-lost-recovery-plan-needed/