Coupling a global climatic model with insurance impact models for flood and drought: an estimation of the financial impact of climate change

Abstract

Abstract. CCR, a French reinsurance company mostly involved in natural disasters coverage in France, has been developing tools for the estimation of its exposure to climatic risks for many years. Both a flood and a drought models ZHUH GHYHORSHG DQG FDOLEUDWHG RQ D ODUJH SROLFLHV DQG FODLPV GDWDEDVH VXSSOLHG HYHU\ \HDU ZLWK LQVXUHUV ¶ GDWD More recently, CCR has been developing a stochastic approach in order to evaluate its financial exposure to extreme events. A large and realistic event set has been generated by applying extreme value statistic tools to simulate hazard and to estimate, using our impact models, the average annual losses and losses related to different return periods. These event sets have been simulated separately for flood and drought, with a hypothesis of independence, consistent with recent annual damage data. The newest development presented here consists in the use of the ARPEGE±Climat model performed by Météo-France to simulate two 200-years sets of hourly atmospheric time series reflecting both the current climate and the RCP 4.5 climate conditions circa year 2050. These climatic data constitute the input data for the flood and drought impact models to detect events and simulate the associated hazard and damages. Our two main goals are (1) to simulate simultaneously flood and drought events for the same simulated years and (2) to evaluate the financial impact of climate change.

The Polarization Effect and Mechanism of China’s Green Finance Policy on Green Technology Innovation

“…Columns (1) to (4) of Table 8 indicate that GFP increases the FAA and FAD for polluting enterprises and decreases these for green enterprises. Columns (5) to (8) reveal that GFP reduces the DR and CAR for polluting enterprises but increases these for green enterprises. When the noncurrent asset turnover increases but the depreciation rate decreases, it typically indicates that the enterprise is pursuing a strategy of scaling up its operations.…”

“…Furthermore, GFP synchronously increases the RDP and RDF of green enterprises. Columns (5) to (8) indicate that GFP significantly reduces the JPA of polluting enterprises, with no significant impact on their IPA. Furthermore, GFP significantly reduces the JPA of green enterprises but significantly increases their IPA.…”

“…We consider the financial leverage (FL) and cash flow per share from investment activities (CF) to reflect the corporate operating strategy. Columns (5) to (8) of Table 9 demonstrate that GFP increases the FL of polluting enterprises while reducing their CF. This suggests that GFP leads to increased debt financing but decreased investment efficiency for polluting enterprises.…”

“…AS-SURPOL, a co-reinsurance group based in France, encourages the development of the GTI by reinsuring environmental risks transferred to pools by insurers on behalf of its members. This approach incentivizes participants to adopt environmentally friendly practices while protecting the interests of the ultimate insured [8].…”