Appendix 5 Examples of climate risk factors Transition Physical Reputational risks • Reputational risks associated with CSR disclosures. Strategic risks • Strategies, such as climate change management, that are not implemented effectively, consistently or in a timely manner, thereby compromising the achievement of Groupe Promutuel’s strategic objectives. Financial risks • Increase in the frequency and severity of extreme weather events leading to higher claims costs and impacts on reinsurance needs. • Changes in seasonality or an increase in claims affecting liquidity. • Decline in asset valuations in sectors vulnerable to transition risks. • Lower returns on investments linked to sectors exposed to physical risks. • Increase in the frequency and severity of claims and extreme weather events affecting the different lines of business. • Increase in claims costs. • Adoption of new insurable technologies related to climate change adaptation (impact on underwriting, pricing, operating costs, and the supply chain). • Changes in market demand and the behaviour of insured members. • Greater uncertainty in risk models. 2025 – CSR SUMMARY 92
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