CLIMATE RISK MANAGEMENT
The impact of climate change has been increasingly felt in recent years, adding to the growing importance of climate risk assessment. Climate risk assessment helps nations prepare for the effects of climate change by evaluating the distribution of resources, diversification, risk pooling, insurance, infrastructure and capability development.
As a major financial centre, Singapore is an ideal launch pad for leading insurance, reinsurance and insurance brokerage companies wanting to meet the region’s insurance needs for climate-related risks. Currently, there are more than 200 insurance players in Singapore tapping on Asia’s market potential.
Singapore Green Finance Centre
The Singapore Green Finance Centre is Singapore’s first centre of excellence dedicated to green finance research and talent development. It was launched in October 2020 by Imperial College Business School and Singapore Management University’s Lee Kong Chian School of Business, supported by MAS and nine founding industry partners. SGFC’s research includes regional climate risk modelling and impact assessment and measurement.
Researching Climate Change Risks
In light of the recent impacts of climate change, the following institutions conduct research in Singapore to better understand the risks of climate change:
NTU’s Institute for Catastrophe Risk Management - Launched in 2010, the Institute for Catastrophe Risk Management (ICRM) is the first institute of its kind in Asia. Aside from studying the vulnerabilities and potential damages of catastrophic events, ICRM collaborates with leading regional institutes in Japan and China. Its research has contributed greatly in helping insurance companies understand and quantify climate change risks.
Earth Observatory of Singapore - Another research institute at NTU, the Earth Observatory of Singapore (EOS) forecasts the regional consequences from global climate change by assessing global climate drivers that are active in our region, such as the Western Pacific Warm Pool and the Indian Ocean Dipole.
NUS Centre for Hazards Research - Focussed on the study of the long- and short-term effects of natural disasters, the Centre for Hazards Research (CHR) examines the effects of climate change on Singapore’s infrastructure and develops new technologies to reduce the potential risks posed by natural disasters.