Actuaries will need to develop mitigation and financingstrategies to handle sustainability risks, according to discussionat the Casualty Actuarial Society Spring Meeting.

"Sustainability risks are going to have a substantial impact onrisk management and insurance, specifically on actuaries, who needto consider these risks in setting premiums and loss reserves,"said Dan Anderson, a professor of actuarial science, riskmanagement and insurance, at University of Wisconsin.

While claims-made policies should help to mitigate D&O,chemical, pollution and discrimination claims, Anderson said thatin the case of global warming and climate change, claims may fallunder occurrence policies which could trigger many policyyears.

Rod Taylor, managing director of Aon Environmental ServicesGroup, explained there are risks that companies and their insurersface from sustainability issues. Taylor said that global warmingand climate change exclusions are already being seen in somegeneral excess liability insurance policies.

"These are being issued to certain kinds of business and you aregoing to see more of them issued to companies in the petroleum,auto manufacturing and power generation industries," he said,adding: "Going forward I think it is going to be very difficult forcertain industries to get coverage for global warming."

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