Good Morning. This morning capital markets may systematically underpricing the biggest risks, and the fixes are arriving from external authorities rather than from the industries downstream of the exposure.
In this morning’s brief:
- Researchers find advanced-economy climate risk runs above what current macro and cat-bond pricing reflects
- Lemonade and White Mountains, 48 hours apart, both named the insurance investor base as the binding constraint on industry strategy
- Congress dropped a discussion draft AI bill creating mandatory audit and insurance scaffolding the same week 272 international AI experts called for exactly that regime.
