To help underwriters better understand the risks associated with climate change, Lloyd's is funding a PhD research post at the London School of Economics and Political Science to investigate just how informative climate models are to decision making in the insurance industry.
Daniel Hawellek is the new Lloyds-sponsored student to receive the funding. The post is also funded through the Engineering and Physical Sciences Research Council (EPSRC) CASE programme.
Mr Hawellek, who recently completed the LSE MSc Statistics programme, will be based in LSE's Centre for the Analysis of Time Series (CATS). This research centre specialises in mathematically modelling complex statistics over long time spans.
Professor Lenny Smith, director of CATS at LSE, said: 'This project is all about improving communication between science and industry. We will explore how mathematical models of the climate compare to the real world, and how they impact decisions the insurance industry has to make. It will also generate feedback to climate scientists on how to make their modelling strategy more relevant to decision makers within the business community.'
This is the first time Lloyd's has funded a PhD post dedicated to climate change.
Trevor Maynard, manager of Emerging Risks at Lloyd's, said: "We take the issue of climate change very seriously at Lloyd's. The insurance industry must take action now to understand and prepare for the risks it presents, and the funding of research plays a critical in developing that understanding."
For more information, see Centre for the Analysis of Time Series or email: firstname.lastname@example.org
Professor Lenny Smith is director of CATS at LSE and a senior research fellow of Pembroke College, Oxford. Email: email@example.com Professor Smith was among those experts consulted as part of the Stern Review of the Economics of Climate Change
Steve Farrance, Lloyd's press office, on 020 7327 6096, or firstname.lastname@example.org
Judith Higgin, LSE Press Office, on 020 7955 7582, email: email@example.com
Lloyd's is also currently in discussion with Oxford University and the University of Reading about funding other PhD posts.
Lloyd's is the world's leading specialist insurance market and expects to have the capacity to write approximately £14.8bn of business in 2006. It occupies sixth place in terms of global reinsurance premium income, and is the second largest surplus lines insurer in the US. In 2006, 62 syndicates are underwriting insurance at Lloyd's, covering all classes of business from more than 200 countries and territories worldwide.
Earlier this year, Lloyd's issued a report, Climate Change: adapt or bust, which looks at the scientific research already available and analyses the impact on the insurance industry. The insurance market also hosted a panel debate, chaired by Sir Trevor McDonald, which saw business leaders and risk experts debating the issue. For more information on Lloyd's work on climate change, visit www.lloyds.com/360
Insurance Journal, USA
Lloyd's Releases Second '360 Report' on Climate Change (1 Nov 06)
Lloyd's has released the second instalment of its 360 Climate Change series, entitled What next for climate change?. The report also highlights a range of measures the market is taking to tackle the growing threat. Lloyd's listed three initiatives including funding PhD research posts specializing in climate change, including one at the London School of Economics and Political Science.
31 October 2006