Abstract This paper introduces the concept of Natural Capital and explores implications for actuarial work by way case studies. It is part a wider series IFoA papers focussing on risks from global biodiversity loss how these can be mitigated.

Although gross domestic product (GDP) is not intended to be a measure of societal welfare, it is often used as such. One shortcoming as a welfare measure is that it fails to account for the non-marketed value of natural resource flows. The difference between societal welfare and GDP is labelled the ‘welfare gap’. A model that accounts for both market and non-market income flows from natural cap...

Introduction All nations face the challenge of simultaneously meeting two imperatives: developing their economies to meet the needs of their people, and ensuring that the productivity and viability of the underlying ecosystems and ecosystem services are maintained at healthy levels over time. Essentially, these imperatives are enshrined in the concept of sustainable development, which is common...

Farmers are exposed to substantial weather and market related risks. Rational farmers seek to avoid large losses. Future climate change and energy price fluctuations thereforemake adaptating to increased risks particularly important for them.Managing soil natural capital—the capacity of the soil to generate ecosystem services of benefit to farmers—has been proven to generate the double dividend...