Climate change can deeply impact a company’s business performance, therefore insurance is an important tool to mediate such a risk, helping firms to remain on the market. Polluting companies want to maximize profits according to different business strategies and that appeal to their risk attitude. Firms are Nash players in an oligopoly market adopting two production technologies, brown or green. Climate change loss is a function of the firms’ emissions and is considered endogenous in the maximization problem of the players. We study firms’ behavior in choosing their more profitable strategy through a random matching evolutionary context. Analysis of the model reveals that the dynamic system admits at most seven stationary states. The paper focuses on the regime in which all the possible strategies coexist, due to its economic relevance. Moreover, the results of the sensitivity analysis show interesting policies to nudge an ecological transition.

This work provides an economic exploration of the multifaceted world of medical malpractice risk. Third party liability insurance plays a central role in protecting healthcare providers and public care institutions from the financial consequences of medical malpractice claims, although in recent years, the industry landscape has been characterised by periods of distress for this type of protection, with rising litigations and reimbursement costs, resulting in a peculiarly complex market. For the Italian context, the study focuses on the financial repercussions for healthcare institutions of the growing trend towards risk retention practises, legally empowered by the introduction of Law No. 24/2017. The analysis employs Generalised Linear Models for the regressive approach to incorporate the structural and organisational characteristics of hospitals and uses quantitative simulations to explore different scenarios at a regional aggregate level. Due to the limited existing literature and data on the topic, this research aims to provide new methods for effectively understanding and managing this type of risk, thereby supporting decision-making processes in the healthcare sector.

This paper studies the evolution of an oligopoly market where two types of companies, brown and green, are present. Green firms adopt a less polluting technology that allows a reduction in emissions. We want to investigate the possibility of an environmental-friendly transition where insurance can give its support to cover the (endogenous) climate change loss. The model is composed of two parts. We analyze a two-stages game in which the companies maximize their profits by choosing output in the first stage and insurance coverage in the second one. Then we develop an evolutionary game to endogenize the selection of being brown or green, according to the expected random profits. We derive analytically the dynamic regimes may arise and we perform a sensitivity analysis at the stable inner steady state, where firms coexist, changing the main key parameters to understand which ones may be strategic for an ecological transition.

The world’s 300 largest pension funds manage assets for more than USD 21 trillion. A strict orientation to environmental, social, and good governance (ESG) in the investment portfolio of pension funds can play a key role in triggering the economy toward a sustainable transition. Can responsible pension plans be an attractive investment opportunity for young people? Since the performance of pension funds depends on the demographic characteristics of investors, other than the financial results of investment portfolios, this study aimed to test the convenience of ESG-oriented pension plans for young contributors aged 20–29 with different risk propensities and attitudes towards sustainability. The analysis was started using accurate data provided by an Italian pension fund, observed from 2012 to 2022. The methods applied were a Monte Carlo simulation of the individual actuarial balances, the expected utility, and the willingness to pay. The results show that ESG-oriented pension funds are convenient for young people who invest in riskier lines. Still, it is sufficient for a light green preference to persuade young contributors to invest in ESG-oriented funds and balanced lines. The results of the study can support pension fund managers in defining and offering appropriate ESG lines suitable for younger investors.

In the past years, climate change has affected honey production more and more and the reduction has become a significant risk for beekeepers. In this paper, we discuss the pricing of a parametric insurance policy drafted to cover the potential losses in terms of honey production due to unfavorable weather conditions: the payment of the insurance benefit is triggered by the breaching of predefined thresholds of a weather index, measured over specific relevant periods. The effectiveness of the coverage is verified by the means of random forests, where the honey production is forecast under different real-world weather scenarios and the beekeepers’ loss is compared with the insurance benefit reimbursed (or not) by the policy. The random forest technique is put along with more common ones, such as ordinary least squares regression and mixed linear models. A practical example is given for the Italian market, where the pricing is derived and assessed for three different zones: North, Centre, and South.