Climate risk is often discussed through the lens of disaster response. Yet Arctica Risk, an independent research platform analyzing climate risk and financial systems, argues that the conversation may also benefit from greater attention to the financial value created when losses never occur.
"Since most markets don't really treat avoided losses as something you can invest in, climate‑related risks are likely to move through private insurers first and often later end up on public balance sheets," says Sienna Shankel, founder and Principle Analyst at Arctica Risk. "It's a good reminder that we may need a financial system built for long‑term, outcome‑focused collaboration."
