Abstract
This study investigates the multifaceted impact of climate change and its media portrayal on the home insurance market. We employ a novel approach to disentangle the effects of objective climate events (e.g., hurricane intensity, flood events) from the influence of climate change-related television news narratives. Firstly, we meteorological data to construct a comprehensive index capturing the physical manifestation of climate change. Secondly, we leverage natural language processing techniques to quantify the volume and sentiment of climate change narratives presented on television news. Finally, we isolate the independent and combined effects of these factors on home insurance premiums and policy availability. This research sheds light on the relative influence of objective climate events and media portrayals on the home insurance market. Our findings will contribute to a more nuanced understanding of how climate change risk is perceived and priced by the insurance industry, and how media coverage shapes these dynamics. The study’s insights can inform policy decisions aimed at mitigating climate risk and fostering a more resilient housing market.
Presenters
Stefano MazzottaFull Professor of Economics and FInance, Economics, Finance, and Quantitative Analisys, Kennesaw State University, Georgia, United States
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
Assessing Impacts in Diverse Ecosystems
KEYWORDS
CLIMATE CHANGE, CLIMATE NARRATIVES, HOME INSURANCE
