Insurance for Climate Change in the Glob

Climate change is overwhelming the world’s capacity to manage climate risk. Index insurance and other financial risk transfer tools, such as derivatives, cat-bonds, and humanitarian disaster funds are being increasingly looked to as solutions to address year to year climate risk to support climate adaptation. However, success is mixed, with experiences of inadequate performance, opaqueness, exploitation, incentivization of mal-adaptation, and approaches that undermine sovereignty and governance. Co-generation and governance tools are not yet developed enough to assure that those who the financing is intended to benefit have an adequate voice in design, or understand critical limitations. There are no easy solutions, with many difficult trade-offs, unsolved problems, and justice challenges. 

In the class, students work to understand the relationship between academic research and project level challenges. The course will be an insider view of practical real world case studies. Students will use real world project materials, data, and software tools to work through the evolution of thought over time, exploring issues such as incentivization of adaptation through community driven strategies, avoiding potential pitfalls, and responsibly implementing financial solutions for large numbers of low-income people. Students will use interactive software tools, quantitative games, and project workflows to analyze case studies and cumulatively develop their own real world case study, guided by academic debates and their own insights to build their own interactive tools and finance solutions.