How can the risk horizon of climate developments, which span several decades, be harmonised with the management horizon of insurance and reinsurance undertakings? We provide possible answers to this central question in this white paper. We focus on its meaningful integration into the strategic management of insurance and reinsurance undertakings, so that this risk observation can result in benefit for the undertaking and sustainability becomes reality. We consider the following aspects:

- The long-term path of possible climate development as a starting point

- Classifying climate risks as a possible material risk on the reference date

- The forward-looking perspective in the own risk and solvency assessment with a mid-term time horizon

- Stress tests and scenario or sensitivity analyses over different time horizons

To demonstrate that climate risks can be integrated into the strategic management of insurance and reinsurance undertakings, this discussion is concluded with two practical examples.