The world today is characterized by a constant barrage of uncertainties. From geopolitical shifts and economic volatility to the looming threats of climate change and the complexities of technological advancements, households, corporations, and governments alike are grappling with unprecedented levels of risk. Recognizing this pervasive reality, the biennial Conference on Risk and Uncertainty in Economics and Finance (RUFE) has emerged as a crucial platform for global scholars to engage with cutting-edge tools and innovative approaches to understanding and managing these challenges.
Launched in 2023 as a joint initiative between the School of Economics at the University of Johannesburg (UJ) and the Center for Mathematical Economics at Bielefeld University, RUFE has quickly established itself as a vital hub for intellectual exchange. The recently concluded second edition, RUFE II, continued this important work, drawing top minds from around the world to delve into the intricacies of risk and uncertainty modeling and impact assessment.
This year’s conference placed emphasis on two particularly pressing areas of uncertainty: climate change and longevity risk. The program featured a series of insightful presentations and discussions, with keynote addresses offering profound perspectives on these critical issues.
A keynote by Professor Hansjoerg Albrecher from the University of Lausanne highlighted the global damage caused by climate change and their implications for the insurance industry. He meticulously illustrated how innovative insurance policies can serve as powerful tools in mitigating these far-reaching effects. Building on this theme, Professor René Aid of Paris Dauphine University explored how novel contract structures can effectively incentivize consumers to embrace more sustainable energy consumption patterns, addressing the uncertainty surrounding the adoption of green technologies.
Another significant source of global uncertainty lies in demographic shifts. Professor An Chen from the University of Ulm and Professor Steven Vanduffel from the Université libre de Bruxelles jointly presented their research on new life insurance models, specifically focusing on tontines. Their work drew parallels between these modern financial instruments and existing community-based financial arrangements prevalent in Africa, highlighting potential avenues for innovative financial inclusion.
Beyond these key themes, RUFE II provided a comprehensive exploration of various facets of risk and uncertainty. The conference sessions delved into theoretical advances in Risk and Uncertainty, showcasing cutting-edge research in areas such as financial risk modeling, uncertainty quantification, and economic decision-making under uncertainty. This theoretical foundation was complemented by empirical studies on financial crises and uncertainty, offering valuable lessons and insights gleaned from both historical and contemporary economic events.
Recognizing the practical implications of academic research, the conference also dedicated significant attention to the policy implications of financial uncertainty. Comparative studies across different regions shed light on how uncertainty impacts policy effectiveness and explored potential strategies for navigating volatile economic landscapes. Finally, the themes of climate and insurance underscored the critical role of robust risk management frameworks in addressing the intertwined challenges of environmental and financial uncertainties.
The impact and value of RUFE II were palpable among the attendees. Professor Hansjoerg Albrecher lauded the “excellent organization and the good composition of the research group.” He stressed that in terms of the global nature of climate change, emphasizing that while each country faces unique exposures, understanding these challenges and fostering awareness about both urgent and long-term actions are paramount. He highlighted the crucial role of scientists in identifying effective measures and developing innovative solutions, including within the insurance sector.
For students, RUFE II provided an invaluable learning and networking opportunity. Abdulrazak Abubakar, a Ph.D. student in Economics at the University of Johannesburg, expressed his appreciation for the chance to learn directly from leading global experts in the field.
The conference also served as a significant milestone for early-career researchers like Josephine Fandrich, a doctoral student from Germany, who valued the opportunity to present her research to an international audience and receive diverse and insightful feedback.
In conclusion, the second edition of the conference on Risk and Uncertainty in Economics and Finance (RUFE II) successfully fostered a vibrant environment for intellectual exchange and collaboration. By bringing together leading scholars to address pressing global challenges related to risk and uncertainty, particularly in the areas of climate change and longevity risk, RUFE continues to play a crucial role in advancing our understanding and developing innovative solutions for an increasingly unpredictable world. The joint initiative of the University of Johannesburg and Bielefeld University has undoubtedly established RUFE as a significant and impactful biennial event in the fields of economics and finance.
Visit the conference website for more: https://sites.google.com/view/risk-and-uncertainty-2025/home
