Climate Risk Insurance Pricing

Online Digital Short Course

This intensive 4-day training on Climate and Catastrophe risk (re)insurance pricing will put yourself in the shoes of an insurance risk taker. You will start understanding the cost of insurance and reinsurance. From hazard over exposure, vulnerability, premium and reserve risk to capital costs and risk products pricing in the insurance market. Working in a small team, you will gain a practical understanding of the cost of Climate Risk Products and gain key insights in the cost of Climate and Disaster Risk Insurance. In addition, this training expands your expertise on climate and disaster risk assessment and the components that make up insurance premium and costs of running a risk carrier.

Registration

Date : April 20th - 23rd 2021
Time : 13:00-16:30 CET

Price per participant: 1,400 EUR *

*Alumni discount is 10%
*Group discount is 10%

Use the code ISF-2021 for a 10% discount!

Target Group

This course is designed for representatives from the public and private sector responsible for climate and disaster risk management, who strive to improve their knowledge on climate risk insurance and reinsurance pricing.

This includes professionals (managers at mid-level and above) from regional and national development institutions/banks, public administration offices at national and sub-sovereign levels, financial intermediaries, cooperatives, Managing General Agents (MGAs), Tech-companies, non-governmental agencies, and agriculture entrepreneurs.

Previous insurance knowledge is useful but not required. Being a reasonably versatile user of Office products including EXCEL is recommended. The course gives the participants the opportunity to deepen their knowledge and understanding on assessing and pricing (re)insurance risk upon their already gained experience.

Learning Target

Although the course has an academic and quantitative foundation it offers an application –oriented approach with many interactive (often excel based) exercises and case studies based on real market losses and real-life examples. After finishing the course, the participants have gained a deep knowledge of the most fundamental principles of insurance risk assessment and pricing from which they will benefit throughout their entire career.

Click HERE to request for a complete course outline.

Methodology

Lecture, discussion, individual and group exercises, case studies and reading materials

Agenda

Day One

Section A: General intro to the (re) insurance market

Insurance in the context of climate and disaster (C&D) risk
Risk as a product
Risk costing & essential cost factors
Technical premium

Section B: Insurance products

Introduction to (re)insurance products
Reinsurance
(Re)Insurance policy structures
Claims management

Day Two

Section C: Insurance market, supply chain and structure

Introduction to the insurance market
Supply chain, buyers/sellers
Climate risk insurance pools
Diversification
Capital market
Underwriting cycle

Section D: Pricing Process

Pricing & regulatory environment
Natural catastrophes, weather & climate
Pricing process
Historical losses

Day Three

Section E&F: Hands-on pricing and model build

Catastrophe modelling
Basic concept, frequency, and severity
Pricing with a “Cat” model
Model evaluation
Predictive modelling

Exercise: Create your own model (introduction to Monte-Carlo simulation)

Day Four

Section G: Examples of models and wider risk modelling

Examples of models, insights into windstorm, earthquake, other modelling
Discussion about models and modelling, what model would you be interested in, how could we build it?

Section H: Limitations and Outlook

Limitations
Dealing with uncertainty
Systemic risk, correlation, and bias
Future of modelling, future of risk pricing

Trainer

Dr. Gero Michel

Dr. Gero Michel is the Heard of Risk Analytics at AIG Re and responsible for Risk analytics for Validus, AlphaCat and Talbot Re. Before this Gero was heading up Analytics for AON Reinsurance EMEA/UK. Before this Gero was Managing Director of Chaucer Underwriting A/S in Copenhagen, DK, as part of Chaucer Underwriting where he is responsible for Chaucer’s European portfolio along with being closely involved in Chaucer’s capital market initiative. In addition Dr. Michel serves as an adjunct professor at Western University, London Ontario, Canada where his lectures include Insurance and Reinsurance as well as creation of catastrophe models. Gero Michel is co-founder of the Chaucer Risk and Research Center that links innovation and science to underwriting. Before this Gero was Senior Vice President, CRO and Head of Risk Analytics of Montpelier Re. where he was responsible for risk analytics, a task that involves innovations in risk management, underwriting strategy, risk reporting, as well as the Montpelier Group's own view of risk and risk modelling.

The Frankfurt School - UNEP Collaborating Centre for Climate & Sustainable Energy Finance

The Centre is a strategic cooperation between Frankfurt School and the UN Environment Programme. Its vision is to advance transformation to resilient low-carbon and resource-efficient economies by attracting new types of investors, in particular catalysing the financing of clean energy by the private sector. The Centre is UNEP’s major knowledge hub for climate finance related aspects. Further information