Insuring Acts of God: Climate Change Impacts on the Insurance Industry (ft. Ernst Rauch, Munich Re’s Chief Climate and Geoscientist)

2050 Investors — Economic and markets megatrends, ahead of 2050’s global sustainability targets

In insurance lingo, an “Act of God” is an event outside of human control or activity, such as natural disasters. With the growing frequency of such "Acts of God" - amplified by acts of men - the question of the insurability of climate risks is front and center.

From the Oracle of Delphi's predictions to the emergence of insurance as a safeguard against unforeseen calamities, Kokou’s narrative weaves through time to contextualize the contemporary role of insurance in mitigating risks. He starts by tracing the roots of insurance back to ancient Greece, then fast forward to the present day where insurance has evolved into a global industry worth over $5.5 trillion, serving as a cornerstone of modern economies.

As climate change increasingly disrupts global weather patterns, the insurance industry faces unprecedented challenges. Natural catastrophes become more frequent and severe, and questions arise about the industry's sustainability and ability to adapt. Will climate change render insurance unaffordable in the long run? How can insurers reshape their business models to confront climate risks sustainably?

Through an engaging interview with Ernst Rauch, Munich Re’s Chief Climate and Geoscientist, we gain valuable insights into how the insurance industry is facing the climate crisis. From recalibrating risk models to fostering collaboration and innovation, insurers are proactively addressing the evolving landscape of climate-related risks.

Moreover, the episode explores the relationship between individual actions, societal resilience, and insurance affordability. By highlighting the critical role of risk management and mitigation strategies, it underscores the collective responsibility in building a more resilient future. Drawing inspiration from historical wisdom and contemporary leadership, it emphasizes the power of collective action in shaping a sustainable future.

About this show

Welcome to 2050 Investors your monthly guide to understanding the intricate connections between finance, globalisation, and ESG.

Join host Kokou Agbo-Bloua, Head of Economics, Cross-Asset & Quant Research at Societe Generale, for an investigation of the economic and market megatrends shaping the present and future, and how these trends might influence our progress to meeting 2050’s challenging global sustainability targets.

In each episode, Kokou deep dives into the events impacting the economy, financial markets, the planet, and society. Through a magical blend of personal anecdotes, in-depth research and narratives overlaid with music, sound effects, and pop culture references, there’s certainly something for everyone.

Kokou also interviews industry-leading experts, personalities, entrepreneurs and even Nobel prize winners! You will learn from the best on a wide range of subjects on current affairs, market shifts, and economic developments.

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Previous episodes of 2050 Investors have explored ESG-influenced financial assets, climate change, AI, greenflation, smart cities, globalization, plastic pollution, food, health care, biodiversity, the energy transition, and more.

Credits

Presenter & Writer: Kokou Agbo-Bloua. Editor: Julien Moity, Vincent Nickelsen. Production Designer: Emmanuel Minelle, Radio K7 Creative. Executive Producer: Fanny Giniès. Sound Director: Antoine Larcher. Music: Rone. Graphic Design: Cedric Cazaly

Whilst the following podcast discusses the financial markets, it does not recommend any particular investment decision. If you are unsure of the merits of any investment decision, please seek professional advice.

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