Nos derniers articles

This paper extends prior work to model an insurance company facing a future "tipping point" where catastrophe risks increase. Using viscosity solutions of a Hamilton-Jacobi-Bellman equation, the authors solve an optimal control problem to find the best dividend strategy. They show that, under fair premium adjustments and full observability, increased catastrophe risk may benefit shareholders. Numerical examples support these findings, and future research may explore relaxing model assumptions.

The paper explores the link between sustainability, carbon metrics, and fund performance before and after COVID-19. It finds that environmental ESG factors align closely with climate risk, while overall ESG scores show weaker correlations. Investor preferences for sustainability shift based on economic conditions, emphasizing profitability over sustainability in investment decisions.

Natural disasters drive insurance premium increases in affected areas for three years and cause delayed, smaller rises in unaffected areas. Insurers also adjust rejection rates, particularly in low-income regions. Financial constraints influence cost distribution, raising concerns about equity and affordability as climate risks grow and insurers adapt pricing strategies.

This study examines climate change's impact on water-related home insurance claims in Norway using a unique dataset. It develops a statistical model to address claim data challenges, reveals geographical and seasonal risk patterns, and evaluates pricing strategies. The findings provide insights for insurers to adapt to evolving climate risks.

This study employs an agent-based #model to explore how #climate shocks spread within #supplychains, linking #climateimpacts to firms' #default #risks. Integrating supply chain and financial models, it outlines a framework to simulate physical risk transmission, downstream effects, and increased default risk. Findings underscore supply chains' role in #climaterisk propagation, advocate adaptation measures, and identify vulnerable sectors. The research underscores the necessity of climate #resilience in supply chains.

"We examine the impact of the U.S. withdrawal from the #parisagreement on the relationship between #climaterisk and #systemicrisk of #us #globalbanking. We find that after 2017, investors stopped pricing climate risk into U.S. systemic risk directly, consistent with domestic investors expecting climate risk #deregulation. However, climate risk still indirectly impacts the U.S. systemic risk through the internal capital markets of U.S. #global #banks operating abroad."

#riskmanagement#geopoliticalrisk"The frequency of economic and #financialcrises is not increasing, but #politicalcrises can make #economiccrises more likely. The paper suggests that feedback between non-economic and economic crises can be important, but there is no comparable evidence for #climaterisk."

"From a #riskmanagement perspective, it is challenging to #model physical and #transitionrisks given the #uncertainty around #climaterisk drivers, such as changes in #governmentpolicy aimed at reducing #greenhousegasemissions, the pace of technological change, and uncertainty around the transmission channels. A dearth of in-house modeling tools and reliance on #thirdparty vendors also hamper #banks’ ability to properly understand and manage #risks. The most recent #boe climate biennial exploratory scenario (#cbes) noted that “banks varied in their ability to scrutinize and understand the strengths and weakness of third-party models, and adapt them appropriately to the CBES.” As a result, projected #losses for banks varied widely, suggesting a high degree of uncertainty about the magnitude of climate risks as well as a limited ability to accurately reflect such risks in business decisions."

#insurance#climaterisk"This paper discusses the relationship between the financial constraints faced by infrastructure assets due to #floodrisk exposure and their ability to finance adaptation to such #risks through internal resources. #risktransfer mechanisms such as #floodinsurance were shown to be a consistent channel leading to increases in #riskreduction through adaptation. "

This commentary discusses the role of #accounting in addressing #climaterisk and promoting #sustainabilityreporting. #regulators are pushing for climate risk #disclosure standards, focusing on #non_financial and forward-looking information.