Insurance Companies and Climate Change

By Jessica In our case on Travelers Insurance, we learned about the immense effect climate change can have on insurance companies: claim volume has been climbing year over year and catastrophes like Hurricane Sandy can cause drops in profits of over 50%. As climate change increases the amount of catastrophic natural disasters, insurance companies have […]

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Cat Bonds and RMBS: Safer

By John Macomber Our class on property/casualty insurance and catastrophe bonds ended with several passionate comments about how Catastrophe Bonds are just like Mortgage Backed Securities. On a philosophical level they might both be financial instruments that lead to mischief and trading abuses; but in structure they are quite different. The key aspects should be […]

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How can we further encourage climate change insurance?

By Daniel An issue raised during the Aspen Skiing Corp case focused on the varying levels of susceptibility of companies to the impacts of climate change. It makes intuitive sense that the industries an companies most exposed to the threat of climate change are loudest in leading the call for change. Despite this, there is […]

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Thinking About Weather/Climate Insurance

By I-C H There is a saying in climate change which states: “mitigate what you can, adapt to what you can’t, and insure the rest”. While this may seem simplistic at first glance, I find it to be a fairly useful framework when thinking about efforts to address climate change. The first thing I find […]

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