The Wharton Risk Management and Decision Processes Center is excited to join forces with several Wharton research centers and labs to form the Environmental, Social and Governance (ESG) Initiative. The ESG Initiative will expand the boundaries of business research and education to deliver essential insights for academics, students, and industry professionals.
Conversations about Risk Rating 2.0
Earlier this year, FEMA fully implemented the NFIP’s new rating methodology, Risk Rating 2.0: Equity in Action. Many stakeholders have been seeking more information on this change. The Wharton Risk Center is pleased to share a blog series with a range of experts to discuss the changes.
Philadelphia’s Flood Risk
Flooding is the number one natural hazard in Pennsylvania. On February 10th and 11th, 2022, The Wharton Risk Center, with support from The Delaware Valley Regional Planning Commission, hosted a two-part workshop on flood risk in the Philadelphia region. Panelists discussed what ways Philadelphia is already vulnerable to flooding, how climate change is exacerbating those vulnerabilities, and what tools, like hazard mitigation planning and insurance, are important for preparing and recovering from flood events.
Explainer Video: Understanding Flood Insurance
The Wharton Risk Center is pleased to share an animated video giving a brief description of flood insurance. This video aims to supplement the many written resources we have about this subject.
In the News
Insurance and aid aren’t covering the cost of disasters in America
USA Today
When disaster strikes, there are typically four ways a home or business owner can recover: insurance, government relief, personal savings, or a personal loan. “Lower income people struggle with all four of those sources. So they are the ones that are consistently, disproportionately harmed by disaster events.” Read more from Carolyn Kousky and other experts on disaster recovery.
Preparing, and paying for, climate change-induced disasters
Penn Today
In the wake of a series of unusual and devastating December tornadoes, Carolyn Kousky tells Penn Today about strategies for resilience and recovery. “The costs and the impact of recovery are often much broader than people anticipate before going through it,” Kousky says. “And recovery takes much longer than people assume it will.”
Beyond Business: Tackling the Climate Crisis. Can Business Lead the Way?
Knowledge@Wharton
On October 20th, 2021, Professor Benjamin Keys, and Professor Sarah E. Light, joined Erika James, Dean of the Wharton School for a virtual panel discussion. They spoke about how climate change is reshaping the mortgage and housing industries as well as an action plan for businesses to follow. This event was part of the Wharton School’s Tarnopol Dean’s Lecture Series, Beyond Business, which streamed on Wharton’s LinkedIn page.
The changing climate is driving up home insurance claims, and rates
Marketplace
The more severe storms, fires and floods are, the more people are going to be dealing with damaged roofs and basements. “And that means that consumers need the protection of insurance more than ever,” said Carolyn Kousky at the Wharton Risk Management and Decision Processes Center at the University of Pennsylvania. But the problem is “those same trends are making it more difficult for insurers to offer coverage, or offer it at a price point that people can afford,” she said.