This paper explains why climate scenario analysis is becoming essential for the life insurance sector as insurers face increasing regulatory and strategic pressure to address climate risk. To support informed decision‑making and long‑term resilience, life insurers need robust modeling to understand how climate change may affect liabilities, assets, and overall business performance. Climate considerations are increasingly embedded in processes such as Own Risk and Solvency Assessment and Strategic Asset Allocation. The paper highlights growing expectations from global initiatives and regulatory bodies, including net‑zero and climate disclosure frameworks, which are driving insurers to adopt forward‑looking scenario analysis and integrate climate risk into core risk management and planning p

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