This page outlines the major themes addressed in our initiative, providing links to key publications or deeper web pages.
Description: To their credit, insurers publicly recognized the risks of climate change as far back as the early 1970s. In time it became clear that they face systemic risk from climate change, arising from simultaneous stresses to the "core business" (underwriting losses: property, health, liability), investment portfolios, and operations.
IPCC: Vellinga, P. V., E. Mills, L. Bouwer, G. Berz, S. Huq, L. Kozak, J. Paultikof, B. Schanzenbacker, S. Shida, G. Soler, C. Benson, P. Bidan, J. Bruce, P. Huyck, G. Lemcke, A. Peara, R. Radevsky, C. van Schoubroeck, A. Dlugolecki. 2001. "Insurance and Other Financial Services." Chapter 8 in Climate Change 2001: Impacts, Vulnerability, and Adaptation. Intergovernmental Panel on Climate Change, United Nations and World Meteorological Organization, Geneva. Working Group II. Coordinating Lead Author. (invited) (peer-reviewed) [PDF]
Mills, E. 2005. "Insurance in a Climate of Change," Science 309:1040-1044 [Online version] [PDF] (invited)
Mills, E., E. Lecomte, and A. Peara. 2001. "U.S. Insurance Industry Perspectives on Global Climate Change." LBNL-45185 [PDF]
Wildfire [PDF]
Crop [PDF]
Mills, E. and R. B. Jones. 2016. "An Insurance Perspective on U.S. Electric Grid Disruptions." The Geneva Papers on Risk and Insurance -- Issues and Practice, International Association for the Study of Insurance Economics, 41(4): 555-586. [PDF]
Epstein, P. and E. Mills (eds.). 2005. "Climate Change Futures: Health, Ecological and Economic Dimensions." Published by Harvard Medical School, sponsored by Swiss Re and the U.N. Development Programme. (Contributing Authors: P. Anderson, J. Brownstein, U. Confalonieri, D. Causey, N. Chan, K. L. Ebi, J. H. Epstein, J. S. Greene, R. Hayes, E. Hofmann, L. S. Kalkstein, T. Kjellstrom, R. Lincoln, A. J. McMichael, C. McNeill, D. Mills, A. Milne, A. D. Perrin, G. Ranmuthugala, C. Rogers, C. Rosenzweig, C. L. Soskolne, G. Tabor, M. V., X.B. Yang). [PDF]
Epstein, P. and E. Mills. 2005. "Climate Change is Hazardous to Your Health." Forbes. November 16. LBNL/PUB-940. [Online version | PDF]
Peara, A. and E. Mills. 1999. "Global Climate Change and its Implications for Life Insurance and Health Organizations," Lawrence Berkeley National Laboratory Report [PDF]
Ross, C., E. Mills, and S. Hecht. 2007. "Limiting Liability in the Greenhouse: Insurance Risk-Management in the Context of Global Climate Change." Stanford Environmental Law Journal and the Stanford Journal of International Law, Symposium on Climate Change Risk, Vol. 26A/43A:251-334 [PDF] (invited)
Mills, E. 2003. "Risk Transfer via Energy Savings Insurance." Energy Policy, 31:273-281. LBNL-48927 [PDF]
Mills, E. 2022. "Inclusive Green Insurance for Climate Change in the Global South: Thoughts for Colombia," Medium,October 26 [link]
Mills, E., 2022. "El Seguor y la Gestion del Cambio Climatico (The Contribution of Insurance for Climate Change Management)". Fasecolda journal. Colombian Federation of Insurance Companies, pp. 188:66-71, in Spanish. [PDF]
Mills, E. 2013. "Insurers as Partners in Inclusive Green Growth." Prepared for the World Bank Group's International Finance Corporation as input to the G20, Washington, DC, 45pp. [PDF]
Mills, E. 2004. "Insurance as an Adaptation Strategy for Extreme Weather Events in Developing Countries and Economies in Transition: New Opportunities for Public-Private Partnerships." Prepared for the U.S. Agency for International Development, LBNL-52220 [PDF]
With the response to defining events such as Hurricane Katrina in 2005 it became clear that climate risks were substantial enough that they could adversely impact insurers willingness to remain in markets, and, at the least could result in severe price increases.
Mills, E., R.J. Roth Jr., and E. Lecomte. 2006. "Availability and Affordability of Insurance Under Climate Change: A Growing Challenge for the U.S." Journal of Insurance Regulation, Winter 2006, Vol. 25, Issue No. 2, pp. 109-149 [PDF]
Mills E. 2006. "The Erosion of Insurability." World Trade Executive. September 5, p. 4-9 [PDF]
In addition to reactive responses to climate risk, some insurers have developed proactive responses such as redesigning products and services to incentivize "climate-friendly" behaviors, while also directing portions of their investment portfolios to climate solutions such as renewable energy.
Mills, E. 2012. "The Greening of Insurance," Science 338:1424-1425 (invited) [PDF]
Mills, E. 2009. "A Global Review of Insurance Industry Responses to Climate Change." The Geneva Papers, International Association for the Study of Insurance Economics, 34:323-359. [PDF] (invited)
Vine, E., E. Mills, and A. Chen. 1998. "Energy-Efficient and Renewable Energy Options for Risk Management & Insurance Loss Reduction." Energy, 25 (2000): 131-147 [PDF]
Mills, E. 1996. "Energy Efficiency: No-Regrets Climate Change Insurance for the Insurance Industry." Journal of the Society of Insurance Research, Fall, pp. 21-58 [PDF]
Responses to climate change can bring new risks -- and also benefits -- requiring insurers to weigh the relative risk profiles of competing technologies and strategies.
Mills, E. 2012. "Weighing the Risks of Climate Change Mitigation Strategies." Bulletin of the Atomic Scientists 68(6):67–78 [PDF] (invited)
Mills, E. 2006. "Synergisms between Climate Change Mitigation and Adaptation: An Insurance Perspective." Mitigation and Adaptation Strategies for Global Change, Special Issue on Challenges in Integration Mitigation and Adaptation Responses to Climate Change, Vol. 12, No. 5, pp. 809-842 [PDF]
Mills, E., S. Kromer, G. Weiss, and P.A. Mathew. 2006. "From Volatility to Value: Analysing and Managing Financial and Performance Risk in Energy Savings Projects." Energy Policy, 34:188-199 [PDF] (invited)
Insurance regulators, responsible for both ensuring company solvency as well as consumer welfare, have focused on climate risk for some time, some taking active measures.
National Association of Insurance Commissioners (NAIC) Climate and Resiliency Task Force
Case study of California including core-business risk, transition risk,
Mills, E., T. Lamm, S. Sukhia, E. Elkind, and A. Ezroj. 2018. "Trial by Fire: Managing Climate Risks Facing Insurers in the Golden State." Sacramento: California Department of Insurance, 93pp. [PDF]
Mills, E. 2007. "The Role of NAIC in Responding to Climate Change," UCLA Journal of Environmental Law and Policy, Volume 26, Issue 1, pp. 129-168. [PDF]