As climate-related disasters become more severe and frequent, insurers and governments face an economic black hole.
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The insurance industry specializes in understanding the nature of risk, and in estimating the likelihood, and cost, of future damages that can result.

A major challenge for the insurance industry is to understand how climate change alters the likelihood of future natural disasters, from floods to wildfires, and how to accurately reflect these risks in the premiums it charges to consumers and businesses.

Carolyn Kousky, executive director of the Wharton Risk Center, takes a look at insurers’ struggle to manage natural disasters of unprecedented scale, the challenge of communicating climate risk, and how climate risk is being felt in the energy industry.

Carolyn Kousky is executive director of the Wharton Risk Center at the University of Pennsylvania. Her work focuses on disaster insurance markets and policy responses to changes in extreme events arising from climate change.

Related Content
Changing Tides: Public Attitudes on Climate Change and Climate Migration https://kleinmanenergy.upenn.edu/policy-digests/changing-tides

Does Attribution Science Give Climate Litigators a Smoking Gun? https://kleinmanenergy.upenn.edu/energy-policy-now/does-attribution-science-give-climate-litigators-smoking-gun

As climate-related disasters become more severe and frequent, insurers and governments face an economic black hole. --- The insurance industry specializes in understanding the nature of risk, and in estimating the likelihood, and cost, of future damages that can result.   A major challenge for the insurance industry is to understand how climate change alters the likelihood of future natural disasters, from floods to wildfires, and how to accurately reflect these risks in the premiums it charges to consumers and businesses.   Carolyn Kousky, executive director of the Wharton Risk Center, takes a look at insurers’ struggle to manage natural disasters of unprecedented scale, the challenge of communicating climate risk, and how climate risk is being felt in the energy industry. Carolyn Kousky is executive director of the Wharton Risk Center at the University of Pennsylvania. Her work focuses on disaster insurance markets and policy responses to changes in extreme events arising from climate change.   Related Content Changing Tides: Public Attitudes on Climate Change and Climate Migration https://kleinmanenergy.upenn.edu/policy-digests/changing-tides   Does Attribution Science Give Climate Litigators a Smoking Gun? https://kleinmanenergy.upenn.edu/energy-policy-now/does-attribution-science-give-climate-litigators-smoking-gun

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by the Kleinman Center for Energy Policy at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

Energy Policy Now

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by <a href="https://kleinmanenergy.upenn.edu/podcast/">the Kleinman Center for Energy Policy</a> at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

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