Insurance and Climate Change Project

COLLABORATORS

Carnegie Mellon (NSF Center)Stanford

UC BerkeleyPostdam

Wharton Risk Management and Decision Processes Center

Purposes of the Project

Identify and examine the relevant uncertainties related to the science of climate

Identify climate-related issues most likely to be important for the insurance industry

Develop decision support tools that could support insurance-related decision making

4 Research Areas

1. Direct Climate and Weather Related Impacts

2. Liability (including D&O Coverage)

3. Impact on Shareholders’ Value

4. New Technologies, Emissions Control Policies and Trading Systems.

Study both risks and opportunities due to global warming

First Carnegie-Wharton Workshop:

“Identify needs in analysis and decision research”

May 8-9, 2006 – Washington, DC

30 participants (academics, public and private sectors, trade associations)

Key challenge: how can we reconcile timeline and agendas of the scientific community and the business community?

Risk Center’s 2-to-3 year research plan to be defined with Carnegie in the coming weeks.