As negotiators just gathered at COP30 in Brazil, one thing is clear: the impacts of climate change are no longer distant warnings. For more than a decade, we’ve watched extreme weather, rising sea levels, and biodiversity loss reshape the world around us.
But have you ever considered how shifting climate patterns and rising temperatures ripple into something as mundane –and vital– as your life insurance or the superannuation you’ll rely on during retirement?
Associate Professor Yanrong Yang, a statistician at The Australian National University’s (ANU) College of Business and Economics (CBE), has secured A$636,574 in Australian Research Council (ARC) funding to help tackle this often overlooked issue.
“Climate change is creating new and uneven risks that directly affect both life insurance and superannuation. Heatwaves and other extreme events are affecting mortality in ways that traditional statistical models weren’t designed to handle,” says Yanrong.
“These climate-related mortality risks are not evenly distributed. They fall disproportionately on vulnerable populations, including Australians in rural, remote, and coastal regions, as well as women, children, and older adults.”
Without properly accounting for regional and social disparities, Australians in more vulnerable communities risk paying disproportionately higher premiums or receiving less financial protection in retirement than they deserve.
As a result, Yanrong’s project aims to build a responsible statistical framework that improves prediction accuracy and supports fair outcomes for all.
“By explicitly modelling the impacts of climate change on human mortality, insurance, and financial markets, and addressing disparities by region, age, gender, and socio-economic status, our research will support more equitable and informed decision-making in both insurance pricing and retirement income products,” she says.
“The research outputs will be shared with managers at Aware Super, Unisuper, Challenger, and TAL for integration into their policies and financial products. We will also disseminate the research outputs to government agencies.”
As climate risks increasingly shape the financial wellbeing of Australians, Yanrong hopes this research will foster greater consumer trust, stronger financial institutions, and a more productive national economy.
“Our project will help strengthen the resilience of Australia’s retirement income system, reducing public reliance on aged pensions, and improving outcomes for individuals,” she says.
“Importantly, the project contributes to one of the Australian Government’s priorities – supporting healthy and thriving communities – by enabling more equitable access to financial protection and long-term security through inclusive, sustainable retirement products and policies.
“It also advances Australia’s commitments to the United Nations’ Sustainable Development Goals, including gender equality, reduced inequalities, and climate action.”
Yanrong’s achievement is one of several ARC funding successes for CBE academics this year. Three additional colleagues will help advance Australia’s national interest through research projects led by external universities:
Professor Ofer Zwikael has been awarded A$511,592 for the ARC Discovery Project Project Governance and Governmentality as Collaborative Challenges, externally led by The University of Sydney.
Associate Professor Francis Hui has been awarded A$482,133 for the ARC Discovery Project Modern sufficient dimension reduction methods for complex dependent data, externally led by The University of Sydney.
Professor Prashant Bordia has been awarded A$396,250 for the ARC Linkage Project Generating the evidence and resources to support a successful retirement, externally led by The University of Queensland with industry partner UniSuper.
The College is always keen to explore research collaborations with the public and private sector and to reconnect with alumni. Please get in touch if you would like to know more about partnering with us.