Climate Risk and Insurance - Raghavendra Rau

Watch the Q&A session here: https://youtu.be/Hwl0YRRaHgE Why did coastal homeowners lose insurance while UK energy bills spiked after Russia’s invasion? Because risks started moving together. In this lecture, I show how climate extremes and geopolitics create synchronized shocks that overwhelm insurers and energy suppliers, pushing up premiums and bills. I discuss the basics of risk pooling, why it breaks under correlation, and what realistic fixes look like—from parametric policies and ...