This article is written by Emily Forsyth-Davies, Head of ESG at Aurum Research Limited. The views expressed are her own and do not necessarily represent those of Aurum Research Limited.
I grew up on the Somerset Levels, which is one of the lowest lying and flattest areas of the UK, where flooding was a fact of life. Every winter brought water sometimes just across the fields, sometimes right up to the doorstep. But what was once manageable has become more extreme. By 2014, entire villages were cut off, the result of building on flood plains, strained defences, and long-standing underinvestment in river dredging. The community was divided. Some blamed the planners, others the government, others the changing climate. What stuck with me was how unprepared we were for a risk that had always been there, but had changed shape.
It’s part of why I now work where climate, capital, and risk intersect. And why I’ve been watching the resurgence of catastrophe bonds and what they do (and don’t) say about how we’re pricing climate risk.
