Financial Models On Climate Risk ‘Implausible’, Say Actuaries
July 4th, 2023
Courtesy of The Financial Times, an article on the limitations of financial models currently used for climate risk: Financial institutions often did not understand the models they were using to predict the economic cost of climate change and were underestimating the risks of temperature rises, research led by a professional body of actuaries shows. Many […]
Read more »Heat Insurance Offers Climate Change Lifeline To Poor Workers
June 20th, 2023
Via Reuters, an article on some innovative insurance schemes launched for heat, cyclones, and drought: A bright sun beat down on the sprawling Indian market where Kamlaben Ashokbhai Patni sat worrying about the brass jewellery on display in her wooden stall. When the heat rises, the metal blackens. Plastic pearls become unglued. “The colour of […]
Read more »Climate Disasters Make It Harder To Insure Your Home
June 19th, 2023
Courtesy of The Washington Post, an article on how insurance premiums are soaring and carriers are pulling back coverage, citing disaster risks: Homeowners are bracing for hurricane and fire seasons, but with insurance premiums rising and carriers pulling back coverage in riskier states, more and more residents don’t know whether they can afford to insure […]
Read more »'Black Swans' are highly improbable events that come as a surprise, have major disruptive effects, and that are often rationalized after the fact as if they had been predictable to begin with. In our rapidly warming world, such events are occurring ever more frequently and include wildfires, floods, extreme heat, and drought.
'Green Shoots' is a term used to describe signs of economic recovery or positive data during a downturn. It references a period of growth and recovery, when plants start to show signs of health and life, and, therefore, has been employed as a metaphor for a recovering economy.
It is my hope that Black Swans / Green Shoots will help readers understand both climate-activated risk and opportunity so that you may invest in, advise, or lead organizations in the context of increasing pressures of global urbanization, resource scarcity, and perils relating to climate change. I believe that the tools of business and finance can help individuals, businesses, and global society make informed choices about who and what to protect, and I hope that this blog provides some insight into the policy and private sector tools used to assess investments in resilient reinforcement, response, or recovery.