Catastrophe and Climate 
     Effects of Pollution and Environmental 
     Degradation on Mortality and Morbidity Rates 
     and Healthcare Costs 
    May 2021 
                                                                                                                                         
                        
                        
                        
                       Effects of Pollution and Environmental 
                       Degradation on Mortality and Morbidity 
                       Rates and Healthcare Costs 
                        
                       AUTHOR            Margaret Conroy, Ph.D, FCAS, MAAA        SPONSOR               Climate and Environmental 
                                                            
                                         Therese Klodnicki, ACAS, MAAA                                  Sustainability Research Committee 
                                                                                                        (CESRC) 
                                                                                                         
                        
                       Caveat and Disclaimer 
                        
                       The opinions expressed and conclusions reached by the authors are their own and do not represent any official position or opinion of the Society of 
                       Actuaries or its members. The Society of Actuaries makes no representation or warranty to the accuracy of the information. 
                        
                       Copyright © 2021 by the Society of Actuaries. All rights reserved. 
                  
                                                                                                             Copyright © 2021 Society of Actuaries 
                                                                             
              
             CONTENTS 
             Executive Summary .................................................................................................................................................. 1 
             Introduction.............................................................................................................................................................. 2 
             The Effect of Environmental Degradation on the Insurance Industry ......................................................................... 2 
             Increasing Rate of Environmental Degradation ......................................................................................................... 3 
             Valuation of Morbidity/Mortality Costs .................................................................................................................... 3 
             Diseases .................................................................................................................................................................... 5 
                 Costliest Diseases and Percent of Costs Attributable to Environment ....................................................................... 5 
                 Less costly, but more widespread diseases .................................................................................................................. 7 
             Main Environmental Drivers of Morbidity/Mortality ................................................................................................ 8 
                 Ambient Air Pollution..................................................................................................................................................... 8 
                 Environmental Chemical Exposures ............................................................................................................................ 10 
                     Neurotoxicants ................................................................................................................................................ 11 
                     Endocrine Disrupting Chemicals ..................................................................................................................... 12 
                 Radiation....................................................................................................................................................................... 12 
                 Interaction and accumulation of pollutants ............................................................................................................... 13 
                 Zoonotic diseases ......................................................................................................................................................... 13 
                 Evolution ....................................................................................................................................................................... 14 
                 Weather and Natural Disasters including climate change ......................................................................................... 15 
             Transgenerational Effects of Environment .............................................................................................................. 16 
             Social Justice ........................................................................................................................................................... 16 
             Conclusion .............................................................................................................................................................. 17 
             Acknowledgments .................................................................................................................................................. 18 
             References .............................................................................................................................................................. 19 
             Feedback ................................................................................................................................................................ 21 
             About The Society of Actuaries ............................................................................................................................... 22 
              
                                  
           
                                                             Copyright © 2021 Society of Actuaries 
                                                                                     1 
                
               Effects of Pollution and Environmental 
               Degradation on Mortality and Morbidity 
               Rates and Healthcare Costs 
                
                
               Executive Summary 
               Human health is largely dependent on environmental health. As our environment degrades, human 
               mortality and morbidity is also degrading. Can the increased costs associated with environmentally induced 
               life and health effects be measured? Global organizations and researchers are endeavoring to do just that, 
               but the estimates are far from all-encompassing and notably understated. Clearly, any changes in mortality 
               and morbidity have an insurance implication. Should actuaries be considering environmental impacts when 
               pricing their products? Which subsets of the population might be affected? Could there be a workers’ 
               compensation impact? Although quantification may be difficult, understanding the potential effects of 
               various environmental changes on mortality and morbidity is the obvious starting point for actuaries. 
               Awareness is the critical first step.   
                
                
                
                                      
            
                                                                  Copyright © 2021 Society of Actuaries