What does it actually mean to misprice risk, and why should somebody who just wants to own a house actually care about whether [laughs] risk is priced right or not?

Yeah.

First of all, pricing risk sounds very abstract, but in the financial markets it's what we do.

You know, when you hold an asset and it has an uncertain value in the future, that's risk.

And, uh, the more uncertain it is, in theory, the more you get paid for it.

Money that pays off when you need it is worth more than otherwise, and insurance is a form of that for extreme events.

When you have very, uh, unlikely events, uh, that happen every so often and would be really bad if you didn't have insurance, you can get someone to come in and say, "Well, if you pay me in advance, I'll take care of that.

You think this is going to continue.

So can you kind of talk about your background and some of the things that you have done in the past?

Sure.

Happy to.

You know, I've had kind of a long journey here.

I, I started out in, in physics, uh, and then that was at Stanford.

They started this, uh, new interdisciplinary program, uh, that I joined, uh, in the inaugural class.

That was back in 1973 we graduated.

So since you've done this and you've pr- priced risk for your entire life, what was the moment that you looked at things like, you know, climate insurance and realized that this was one of the most mispriced risk you have ever seen?