WTW to assess systemic global risks from massive volcanic eruptions
Global brokerage WTW has partnered with the University of Geneva to quantify the rare but catastrophic effects of very large volcanic eruptions on climate, food security, and society.
The collaboration aims to assist WTW in anticipating how a future massive eruption would affect operations and portfolios and help make better decisions to manage exposure over the long term.
WTW and the University of Geneva will re working together to quantify the risks of major eruptions over the next few decades and anticipate their effects on weather-related extremes, including frost, floods, droughts.
Scott St. George, head of weather and climate research for the WTW Research Network, said: “It’s understandable people worry most about risks that are familiar to them. But volcanoes have been the leading cause of global climate disruptions for most of human history. Through this collaboration, WTW will gain unprecedented insight into the worldwide consequences should a Tambora-scale eruption occur in our future. The fact that many of those risks may not be insurable doesn’t mean we shouldn’t quantify them.”
Markus Stoffel, chair for climate change impacts and risks in the Anthropocene at the Faculty of Sciences of the University of Geneva, added: “Having worked extensively on the impacts of past tropical volcanic eruptions, it is surprising how little attention we pay to this disaster risk. Natural proxies – such as tree rings or corals – and historical accounts provide ample evidence for the catastrophic consequences that past eruptions have had on food security and societal stability. The collaboration with WTW is to better apprehend the likely consequences of volcanic risks and on how to fully recognise these overlooked risks in the insurance sector.”
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