Climate Risk and Insurance - Raghavendra Rau

Watch the Q&A session here: https://youtu.be/Hwl0YRRaHgE

Why did coastal homeowners lose insurance while UK energy bills spiked after Russia’s invasion? Because risks started moving together. In this lecture, I show how climate extremes and geopolitics create synchronized shocks that overwhelm insurers and energy suppliers, pushing up premiums and bills. I discuss the basics of risk pooling, why it breaks under correlation, and what realistic fixes look like—from parametric policies and better building standards to smarter hedging and targeted support.

This lecture was recorded by Raghavendra Rau on the 18th of February 2026 at Barnard's Inn Hall, London

Raghu is the Mercers School Memorial Professor of Business

He is also the Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School.

The transcript of the lecture is available from the Gresham College website: https://www.gresham.ac.uk/watch-now/climate-insurance

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