It is rare that the judges allow deals to go out at
less than tangible book value, particularly on short -
tailed P&C companies with little insolvency
risk.
To be useful in a
risk context, climate change assessments therefore need a much more thorough exploration of the
tails of the distributions of physical variables such as sea level rise, temperature, and precipitation, where our scientific knowledge base is
less complete, and where sophisticated climate models are
less helpful.