Ricardo Govender, Chief Actuary at Old Mutual Insure

As the effects of climate change continue to intensify, the need for accurate and actionable climate data has never been greater. For insurers, whose business depends on understanding, pricing, and managing risk, climate intelligence is no longer a “nice to have” but a business imperative.

“The insurance industry sits at the front line of climate risk. We see first-hand how extreme weather events are affecting people, property, and livelihoods. To respond effectively, we need data that not only tells us what has happened in the past, but what and how things are changing,” explains Ricardo Govender, Chief Actuary at Old Mutual Insure.

Recognising this, Old Mutual Insure has partnered with the Actuarial Society of South Africa (ASSA) to launch the South African Climate Index, a groundbreaking tool that quantifies and tracks the frequency of extreme weather events across the country.

The ASSA Climate Index provides a systematic, data-driven way to measure climate extremes, such as floods, droughts, heatwaves, and cold spells. It combines indicators, including temperature extremes, heavy rainfall patterns, and drought conditions, into a single composite score that reflects the frequency and intensity of these events compared to historical norms. The data is standardised against a baseline mean from 1991 to 2020, enabling actuaries, insurers, policymakers, and researchers to assess deviations from historical trends.

For non-life insurers like Old Mutual Insure, whose portfolios are increasingly exposed to climate-related risks, access to credible and detailed data of this kind is vital. The Climate Index allows insurers to quantify emerging risks more accurately, align underwriting and pricing models with environmental trends, and contribute to informed public policy. It also empowers clients and communities in adapting to the realities of a changing climate.

“Climate change is no longer a distant or abstract risk; it is here, and its impacts are being felt across industries and communities. Our involvement in the Climate Index reflects our belief that good data leads to good decisions,” says Govender.

He adds that this type of data collaboration strengthens both business resilience and the social fabric of the economy.

“When we have robust, transparent climate data, we can empower businesses to adapt, governments to plan more effectively, and insurers to remain a stabilising force. This is not just about managing claims; it is about building a system that understands and manages climate risk holistically,” Govender explains further.

Old Mutual Insure has consistently been at the forefront of climate-conscious risk management in South Africa. Its partnership with ASSA reflects a recognition that climate resilience requires collective intelligence, bringing together data scientists, actuaries, insurers, and policymakers to develop tools that make sense of an uncertain future.

“Ultimately, our goal as an industry should be to make decisions that are purposeful in our efforts to manage climate risk but also allow us to remain sustainable. Our support for the Climate Index ensures that we are investing in a future where businesses, communities, and ecosystems can all thrive despite the challenges of climate change,” concludes Govender.

Looking ahead, ASSA plans to expand the index to include hail leading conditions, extreme wind, and fire leading conditions, as well as predictive scenarios and broader regional coverage across Africa. These enhancements will further strengthen the tool’s relevance for the insurance and risk management industries.

The ASSA Climate Index can be accessed via this link - https://climate.actuarialsociety.org.za/max-temp/2025/8/agera5