Economics, Econometrics and Finance
8 years ago

Climate change science crucial for insurance industry to mitigate financial risks.

SSRN Electronic Journal
Interdependency of Science and Risk Finance in Catastrophe Insurance and Climate Change
Paul R. Kleindorfer

Paper Summary

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The article discusses how science and finance are connected in providing insurance for natural disasters, especially those related to climate change. It emphasizes the importance of using solid scientific knowledge to set insurance rates and plan for future risks. Uncertainties in climate science can make it challenging to assess risks accurately and communicate them effectively. The relationship between science and finance is crucial for creating insurance options for governments facing climate change risks.