Climate Risk Innovations
Climate Risk Innovations
At Climate Risk Innovations we help to create innovative risk transfer solutions for climate risk. We offer consulting services around catastrophe risk management
and academic research projects.
Dr. Falk Niehörster
Falk is a mathematician (PhD) and leading expert in climate risk, catastrophe modelling and risk management. He is known as an innovator working towards applicable solutions and viable products around catastrophe risk. Falk interfaces science with decision-making on various organizational levels. He has a track record of involvement in high-level industry initiatives and working with leading academics on risk assessment and adaptation economics.
Previously, Falk was product strategist for Risk Management Solutions and Executive Manager of the Risk Prediction Initiative in Bermuda. At the London School of Economics, Falk was providing strategy support for the insurance and policy sector, including policy briefings for climate negotiations of the United Nations.
Previously, Falk was product strategist for Risk Management Solutions and Executive Manager of the Risk Prediction Initiative in Bermuda. At the London School of Economics, Falk was providing strategy support for the insurance and policy sector, including policy briefings for climate negotiations of the United Nations.
Recent report: Ocean Risk and the Insurance Industry
A diverse array of ocean-related phenomena occur today and more are expected to emerge in the future as ocean risk evolves in response to the observed and accelerating warming, acidification, oxygen depletion and other man-made threats to the ocean. This report aims to raise awareness of potential insurance industry-related impacts of these interconnected threats and the important role the industry can play in managing emerging ocean risks, seizing new opportunities, and helping to make the industry, the global economy, and society more resilient and responsive to the consequences of a rapidly changing ocean.
Ambiguity about the probability of loss is a salient feature of catastrophe risk insurance. Evidence shows that insurers charge higher premiums under ambiguity, but that they rely on simple heuristics to do so, rather than being able to turn to pricing tools that formally link ambiguity with the insurer’s underlying economic objective. In this paper, we apply an 𝛼-maxmin model of insurance pricing to two catastrophe model data sets relating to hurricane risk. The pricing model considers an insurer who maximises expected profit, but is sensitive to how ambiguity affects its risk of ruin.