The Munich Re Programme: Evaluating the Economics of Climate Risks and Opportunities in the Insurance Sector Laplace’s Demon and Climate Change

Science in 2008 to advance public and private action on climate change through innovative, rigorous research. The Centre is funded by the UK Economic and Social Research Council and has five inter-linked research programmes: 1. Developing climate science and economics 2. Climate change governance for a new global deal 3. Adaptation to climate change and human development 4. Governments, markets and climate change mitigation 5. The Munich Re Programme-Evaluating the economics of climate risks and opportunities in the insurance sector (funded by Munich Re) The Munich Re Programme is evaluating the economics of climate risks and opportunities in the insurance sector. It is a comprehensive research programme that focuses on the assessment of the risks from climate change and on the appropriate responses, to inform decision-making in the private and public sectors. The programme is exploring, from a risk management perspective, the implications of climate change across the world, in terms of both physical impacts and regulatory responses. The programme draws on both science and economics, particularly in interpreting and applying climate and impact information in decision-making for both the short and long term. The programme is also identifying and developing approaches that enable the financial services industries to support effectively climate change adaptation and mitigation, through for example, providing catastrophe insurance against extreme weather events and innovative financial products for carbon markets. This programme is funded by Munich Re and benefits from research collaborations across the industry and public sectors. established by the London School of Economics and Political Science in 2008 to bring together international expertise on economics, finance, geography, the environment, international development and political economy to create a world-leading centre for policy-relevant research and training in climate change and the environment. This working paper is intended to stimulate discussion within the research community and among users of research, and its content may have been submitted for publication in academic journals. It has been reviewed by at least one internal referee before publication. The views expressed in this paper represent those of the author(s) and do not necessarily represent those of the host institutions or funders.