How did the Allianz Climate Risk Award begin?
The idea for the award came from Allianz Re’s CEO at the time, Amer Ahmed. As our work in catastrophe research and model development grew, he wanted to get closer to scientific institutions and better understand what was happening on the research side.
For me, the Allianz Climate Risk Award was also a way of giving something back to the scientific community. Insurers and reinsurers regularly seek out scientific research, and we’re continuously focusing on how to use data to improve risk decisions. This gave us an opportunity to support young scientists working on topics that are relevant to businesses today.
How has the award evolved over the past 10 years?
It started as a relatively small initiative. Over the last decade, it has grown in visibility and reach, helped in part by social media and the increasing interest in climate-risk research.
One of the most positive developments has been the international reach of the award. In the beginning, we relied more heavily on universities and research institutions that already had links to our team. Today, applications come from a much broader network of scientists.
The research topics have evolved as well. In recent years, we’ve seen more work involving areas such as AI, supply chains and compound climate events.
Why is collaboration between science and industry so important?
Academic institutions and businesses often approach problems from different perspectives. While publication is the currency of scientific institutions, for insurers the currency is how well we can translate a finding into actionable insights that help us support our clients, whether that’s in risk underwriting or supporting preparedness for natural catastrophes. This gap needs to be bridged, and conversations, projects and awards can help bring our two objectives together.
Researchers benefit from understanding which questions matter to businesses, while companies benefit from access to emerging science and data, and to new ways of thinking about climate risk in trade and supply chains. Working with researchers in different regions can also help turn this information into insights that are relevant to specific markets.
This year, the award has moved to a three-track model. What’s behind this new structure?
The new structure reflects the way the award has matured. The Global Award still sits at its core, but we wanted to broaden its scope.
The Allianz Trade Thematic Spotlight explores the relationship between climate risk and global trade. The goal is to support research into better predictions of the impact of extreme weather events on trade routes, and the resilience of trade networks to these risks.
Our new Regional Spotlight focuses on Asia this year – a dynamic region of rising economies in need of climate adaptation and resilience. Allianz’s presence in Asia Pacific gives us visibility of local challenges there, and this research can help us advise those clients more effectively.
Together, the three tracks aim to improve our understanding of climate risks. This can feed into our underwriting and broader risk assessment, and support our adaptation and resilience services.
Can you give an example of research translating into practical action?
One former award winner founded a company that uses AI to carry out rapid and cost-effective hydraulic modeling for flash flooding. This kind of modeling could help an industrial client or a municipality understand how a site could be affected by flooding, and identify ways to reduce future losses.
The Allianz Climate Risk Award is one way in which we can translate academic research into practical action, but it’s not the only point of entry. Another example of how we apply science to improve our understanding of risk is hail research. Allianz is working with the Karlsruhe Institute of Technology on hail and climate change. This kind of collaboration can help refine our physical-damage models, which ultimately leads to better decision-making.
How does the award support the next generation of scientists?
The award is aimed at researchers at an early stage of their careers. For many, it may be the first opportunity to present their work in front of an international jury of scientists and business leaders. This is an important stepping stone for young scientists, who will get an opportunity to see how their research can be applied in real-world situations and practice sharing their insights with a wider audience.
And our collaboration does not end with the ceremony. Each year, we publish a compendium of the top 10 applicants, giving their work a broader platform. Winners also return as jury members, and we stay in touch with participants as their careers develop. Some former winners have even become Allianz employees or business partners.
What do you hope the next 10 years of the award will bring?
I hope we’ll become faster at translating scientific developments into business and insurance practice. AI is likely to speed up what researchers can do, and we need to become equally effective at incorporating new findings into our own tools. There will be an even greater need for adaptation measures over the coming years, and they will have a direct impact on us all.
Science and industry will need to work more closely together, and the Allianz Climate Risk Award will continue to provide a platform for research and collaboration. By connecting scientific insight with real-world decision-making, the award supports a shared goal: to help us all prepare for the climate risks ahead.
