The Actuaries Institute has warned that extreme weather conditions are set to continue, and investors needed to be aware of the risks.
The Actuaries Climate Index found that autumn 2019 continued the pattern of extreme weather with the second most extreme numbers of hot days ever recorded.
Only the autumn of 2016 and summer 2018/19 showed more extreme temperatures and is a trend consistent with the Australian Bureau of Meteorology projections.
The index is the fourth quarterly update of extreme weather and shows changes in frequency of extreme high and low temperatures, rain, dry days, strong winds and sea level changes.
Actuaries Institute chief executive Elayne Grace said the extremes were set to continue and posed a risk to people, communities, environment and economy.
“There is a growing urgency to understand the occurrence of extremes and the impacts of climate change on businesses and communities,” she said.
Ms Grace said in autumn 2019 there was a near doubling of the frequency of extreme high temperatures which had spurred on various parties to take notice.
“We have seen a strong rise in the momentum of interest from various parties, including from Australia’s regulators, the Australian Prudential Regulation Authority and the Reserve Bank of Australia.”
Actuaries Institute’s president Nicolette Rubinsztein said the data allowed regulators like APRA to monitor trends in extremes and use them to inform policy.
“It is crucial to build the index over time, so we can assess change based on data and objectively contribute to this important public policy issue,” Ms Rubinsztein said.