Ανάρτηση Ερευνητικού Δοκιμίου no 10/25

    Ερευνητικό Δοκίμιο no 10/25 με τίτλο "Temperature as a Premium Factor. Insurance Incorporating Climate Change. A Comparative Case Study between Europe and North America"

    της Ειρήνης Νομικού-Λαζάρου

    Περίληψη

    This study explores the critical role of insurance in managing risks associated with climate change. By distributing risk among various entities, the typical insurance premium structure encompasses a systematic component (the expected loss) and an unsystematic component (low-probability events often uncharged). However, with increasing climate-related natural disasters, there is a shift from the unsystematic to the systematic part of premium calculations. Our findings reveal that while both North America and Europe face rising climate risks, Europe exhibits a systematically higher insurance gap due to varying levels of public welfare support and cultural attitudes, which introduce different levels of moral hazard in both regions. His torical data indicate a strong correlation between temperature anomalies and the frequency and severity of climate disasters; however, Europe shows a higher disaster response for each degree of warming. This creates considerable challenges for individuals seeking natural disaster  coverage and threatens the financial stability of the European insurance market. Consequently, these findings underscore the urgent need for collaboration between insurers and policymakers.  As climate risks extend beyond the private sector, it is critical to enhance resilience and ensure long-term economic stability for affected communities. Estimated projections indicate a steep increase in climate-related premiums until 2030, with North America showing higher premiums across all Shared Socioeconomic Pathways (SSP) scenarios. However, it is estimated that Europe is about to face mid-scenario hikes, which is the most probable one, as early as 2026-2027, reaching four times the premiums of 2024, posing significant challenges to the sustainability of disaster coverage.

    Η Ειρήνη Νομικού-Λαζάρου είναι Υπότροφος του Ιδρύματος Fulbright και Υποψήφια Διδάκτορας στη Διαχείριση Κινδύνου Κλίματος στο τμήμα Οικονομικής Επιστήμης του Οικονομικού Πανεπιστημίου Αθηνών.