Climate Change and Hedging: One Person’s Opportunity is Another’s Credit Risk

In a recent article published by Bloomberg BNA, Lindene Patton, Senior Advisor to The Horinko Group, explores the need and opportunities to identify, quantify, and recognize the risk to creditworthiness presented by climate change. The article, Climate Change and Hedging: One Person’s Opportunity is Another’s Credit Risk, presents a comprehensive view of why the time is right for further development and deployment of natural catastrophe risk analysis tools by those outside the insurance industry who bear the risk of extreme weather events and climate change.

The following is an excerpt from the article’s introduction:

“With the multi-decadal shift of natural catastrophe risk away from the insurance industry and onto sovereigns (national and local), corporations and individuals, now is the time to explore development and deployment of such data and analytic tools for use outside the (re)insurance industry. Deployment of these tools by ultimate risk bearers directly to better inform natural catastrophe risk assessment and risk management frameworks—including the expanded use of insurance, infrastructure investment and other natural catastrophe risk management and mitigation mechanisms—could result in significant improvements to overall economic stability and creditworthiness in the face of natural catastrophe and climate change.”

To read the full article, visit http://bit.ly/1NJNAsn

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