Dr. Zhiyun Li
will serve as the Mercury Insurance Climate Economist at UCLA
Anderson Forecast, providing insight into the economic impact of
climate change in California and
its implications on the insurance business
LOS
ANGELES, July 16, 2024 /PRNewswire/ -- Mercury
Insurance (NYSE: MCY), a leading provider of property and
casualty insurance, has announced a strategic partnership with the
UCLA Anderson Forecast to spearhead research into the growing
impact and implications of climate change on the California economy. The results of the effort
will help create a roadmap for California — and California-based businesses like Mercury — to
support Californians living with increased risk from the impacts of
extreme climate events.
"As the nation's most populous state and fifth largest economy
in the world, California is
heavily impacted by climate-related issues," said Jerry Nickelsburg, Faculty Director, UCLA
Anderson Forecast and Adjunct Professor of Economics. "The economic
modeling and analytic techniques we apply at the Forecast will be
enhanced through our relationship with Mercury Insurance."
Mercury Insurance has invested heavily in recent years to
develop a better understanding of the impact that climate change is
having on the company and its customers, and these learnings have
transformed how Mercury operates and manages catastrophic weather
risks. As a California company
doing business in a number of states that carry their own specific
climate risks — from wildfires in the West to convective storms in
the Midwest and hurricanes in the Southeast and East — Mercury
continues to invest in developing products and services that
protect the safety and financial well-being of the communities it
serves.
"The relationship we are building with Dr. Li and the Anderson
Forecast will further our understanding of the implications of
various climate risks," said Victor
Joseph, President and Chief Operating Officer of Mercury
Insurance. "The research UCLA is
conducting in this area is significant, because they are examining
links between climate risks and the potential economic impact these
risks can have on various facets of the economy. This partnership
will support greater collaboration with external stakeholders so we
can collectively build better solutions for communities most
vulnerable to extreme climate events."
Leading the effort will be Dr. Zhiyun
Li, who joined the UCLA Anderson Forecast in 2023. Dr. Li's
work on climate change and its impact on the California economy was initially funded by a
one-time grant from the California State Legislature. Mercury's
involvement will provide ongoing funding of the position to allow
Dr. Li to continue her work studying and forecasting
climate-related issues at the state and national levels — research
that includes how climate change and climate-related disasters
affect different aspects of the economy and how the private sector
and individuals adapt to climate impacts.
"Climate change has had a major impact on the insurance
industry, and as a result, Mercury has continued to refine our
approach to wildfire risk," says Joseph. "We review each
policyholder individually and have strived toward greater
communication and collaboration with our customers and communities.
We work with them to implement best practices, and this has helped
Mercury stay open for business in areas where other companies have
pulled back significantly."
The findings of Dr. Li's work will continue over the next
several years and will be shared externally on a periodic basis
from Mercury Insurance and the UCLA Anderson Forecast via written
communications, during economic conferences and through requests
from the media.
About UCLA Anderson Forecast
UCLA Anderson Forecast is one of the most widely watched and
often-cited economic outlooks for California and the nation and was unique in
predicting both the seriousness of the early-1990s downturn in
California and the strength of the
state's rebound since 1993. The Forecast was credited as the first
major U.S. economic forecasting group to call the recession of 2001
and, in March 2020, it was the first
to declare that the recession caused by the COVID-19 pandemic had
already begun.
uclaforecast.com
About Mercury Insurance
Mercury Insurance (NYSE: MCY) is a multiple-line insurance
carrier predominantly offering personal auto, homeowners and
renters insurance through a network of independent agents in
Arizona, California, Georgia, Illinois, Nevada, New
Jersey, New York,
Oklahoma, Texas and Virginia, as well as auto insurance in
Florida. Mercury writes other
lines of insurance in various states, including commercial,
business owners and business auto, landlord, home-sharing,
ride-hailing and mechanical protection insurance.
Since 1962, Mercury has provided customers with tremendous value
for their insurance dollar by pairing ultracompetitive rates with
excellent customer service. Mercury has earned "A" ratings from
A.M. Best and Fitch, as well as "Best Auto Insurance Company"
designations from Forbes and Insure.com. For more information visit
www.MercuryInsurance.com or follow the company on Twitter or
Facebook.
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SOURCE Mercury Insurance