The Volatility and Risk Institute hosted its annual conference on Friday, April 26, 2024. The topic was "Insurance and Rising Climate-Related Risks"
Conference Theme
Insurers have for centuries written policies that cover losses from storms, floods and fires. Indeed the modern concept of property insurance, to mutualize the risk of loss -- or spread it across the insured population -- followed the Great Fire of London, which in 1666 consumed more than 13,000 houses.
But in the face of intensifying losses, insurers are raising premiums, denying coverage or pulling out of markets. Is climate change responsible? Is this a case of market failure with misaligned incentives, or is the market appro...