The reason I chose the SIRI Practicum is that I want to apply my learning and previous working experience to real-world applications and make a real impact on the industry. I had two years of research experience in the sustainable finance field before I started my Columbia journey. However, I never had a chance to apply those experiences to real-world applications, something that I was thrilled to gain from my journey at Columbia University. Thankfully, I was given the chance to do so through the SIRI Practicum. The project I am working on is not only a valuable learning experience for me but also a wonderful opportunity to make a positive impact on the financial market.
The project seeks to investigate the repercussions of the 2025 Los Angeles wildfire on investors’ portfolios by analyzing the changes in insurance costs and developing a methodology that investors can use to understand the potential impact on their portfolios after insurance costs rise in regions affected by extreme weather events. This is a pressing issue in the capital market today, as the escalating risks posed by climate change have made it challenging for some businesses and residents to obtain affordable insurance to manage their risks. This not only affects the local economy but also has significant secondary consequences for mortgage markets, stock markets, and the fundamental structure of insurance markets themselves. The methodology we develop through the project will provide a clearer explanation of how the insurance crisis triggered by such events contributed to the decline in portfolio value. This explanation is valuable for investors and policymakers as they can better prevent significant losses, making their risk management plan better able to ease the climate change impact.
At the current stage of our study, my team is conducting background research on the insurance industry and its changes after the LA wildfire. At first, we focused on the premium changes in the affected area since they provide an instinctive way to understand the cost of insurance. However, after a couple of discussions and further research, we realized that the availability of insurance is also a crucial factor that needs to be considered. For example, the decrease in coverage of insurance policies, the retreat of insurance companies, and the strict conditions to trigger a claim. All of these make me rethink the approach of this project and the impact of climate change in that area. This revelation significantly altered our research methodology, making the project more challenging but more relevant to the experiences of local businesses.
Through the work that we’ve done currently, I have also gained lots of valuable experience in how to effectively collaborate with teammates. During this early-stage research, we have extensive discussions, sharing the information we think is valuable for our project. This collaborative process enabled me to integrate diverse perspectives into our work. Additionally, I also have the chance to enhance my project management skills during this project since we were responsible for scheduling meetings with both clients and ourselves and making sure that our project is on track. These experiences are what I’m seeking. Collaboration is one of the most crucial aspects in addressing climate change issues, and I believe that these experiences can be an important foundation for everyone in the team to become a climate leader in the future.
This experience has taught me that the insurance sector is not merely a technical mechanism for risk transfer, but a fragile pillar of economic resilience in the era of climate change. Additionally, how seemingly minor shifts in insurance pricing or regulation can accumulate into significant consequences for both local economies and global markets makes me start to be interested in the industry. Beyond the research, I also believe that this is a wonderful chance to enhance my soft skills, critical for becoming a climate leader in the future. After this project, I believe all lessons will remain central as I continue my journey at Columbia, preparing me to contribute meaningfully to the evolving landscape of sustainable finance.