Property and casualty insurer Mercury Insurance announced a strategic partnership with UCLA Anderson Forecast to examine the growing impact and consequences of climate change on California’s economy.

The collaboration aims to create a roadmap for California and California-based companies, like Mercury, to support populations facing increased risk from extreme weather events.

Mercury Insurance said it has invested significantly in recent years to better understand the impact of climate change on the company and its customers. These efforts have impacted how Mercury operates and manages catastrophic weather risks.

As a California company operating in states with unique climate risks — ranging from wildfires in the West to storm surges in the Midwest and hurricanes in the Southeast and East — Mercury also said it continues to develop products and services to protect the safety and financial well-being of the communities it serves.

The effort will be led by Dr. Chun Lee, who joined UCLA’s Anderson Forecasting Center in 2023. Dr. Lee’s work on climate change and its impact on California’s economy was initially funded by a one-time grant from the California State Legislature.

Mercury’s participation will provide ongoing funding to allow Lee to continue her research on climate-related issues at the regional and national levels. Her research includes examining how climate change and climate-related disasters affect different aspects of the economy and how the private sector and individuals adapt to climate impacts.

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“The relationship we are building with Dr. Lee and Anderson’s forecasts will enhance our understanding of the implications of different climate risks,” said Victor Joseph, President and COO of Mercury Insurance. “UCLA’s research in this area is important as they examine the links between climate risks and the potential economic impact these risks can have on different aspects of the economy. This partnership will support greater collaboration with external stakeholders so that we can collectively build better solutions for communities most vulnerable to extreme weather events.”

“As the nation’s most populous state and the fifth-largest economy in the world, California is deeply affected by climate-related issues,” said Jerry Nickelsburg, faculty director of the Anderson Center for Forecasting at UCLA and assistant professor of economics. “The economic modeling and analytical techniques we apply at Forecast will be enhanced by our relationship with Mercury Insurance.”

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