Author: Kenneth Araullo
Original article here.
Property and casualty carrier Mercury Insurance has announced a strategic partnership with the UCLA Anderson Forecast to research the growing impact and implications of climate change on the California economy.
The collaboration aims to create a roadmap for California and California-based businesses, like Mercury, to support residents facing increased risk from extreme climate events.
Mercury Insurance stated that it has invested significantly in recent years to better understand the impact of climate change on the company and its customers. These efforts have influenced how Mercury operates and manages catastrophic weather risks.
As a California company doing business in various states with unique climate risks – ranging from wildfires in the West to convective storms in the Midwest and hurricanes in the Southeast and East – Mercury also said that it continues to develop products and services to protect the safety and financial well-being of the communities it serves.
Dr. Zhiyun Li, who joined the UCLA Anderson Forecast in 2023, will lead the effort. Dr Li's work on climate change and its impact on the California economy was initially funded by a one-time grant from the California State Legislature.
Mercury's involvement will provide ongoing funding to allow Li to continue her research on climate-related issues at the state and national levels. Her research includes examining how climate change and climate-related disasters affect different aspects of the economy and how the private sector and individuals adapt to climate impacts.
"The relationship we are building with Dr. Li and the Anderson Forecast will further our understanding of the implications of various climate risks. The research UCLA is conducting in this area is significant because they are examining links between climate risks and the potential economic impact these risks can have on various facets of the economy. This partnership will support greater collaboration with external stakeholders so we can collectively build better solutions for communities most vulnerable to extreme climate events,” said Victor Joseph, president and chief operating officer of Mercury Insurance.
"As the nation's most populous state and fifth largest economy in the world, California is heavily impacted by climate-related issues. The economic modeling and analytic techniques we apply at the Forecast will be enhanced through our relationship with Mercury Insurance,” said Jerry Nickelsburg, faculty director of the UCLA Anderson Forecast and adjunct professor of economics.