Lloyd’s of London is issuing a call for entries to its prestigious Science of Risk prize.

The annual competition, launched in 2010, will award £5,000 each to the two entrants who can best explain how risks related to ‘natural hazards’ and ‘climate change’ will affect the insurance industry in the future.

Dr Richard Ward, Chief Executive of Lloyd’s of London, said: “The exceptional natural catastrophes of 2011 clearly demonstrated both the impact of unexpected events on communities and business and the importance of adapting the way we live to minimise their effects. To protect ourselves from emerging risks we need to understand them. In search of that knowledge, Lloyd’s has always been proud of its relationships with scientists, academics and researchers.

“Last year’s competition showed us what a wealth of imagination, innovation and scientific endeavour exists in the academic world, and how current ideas can provide the practical applications we need to tackle the problems our world faces both today and in the future. I strongly encourage applicants researching ways in which we can protect ourselves from the hazards of the natural world and the increasingly severe impacts of climate change to apply for this year’s Lloyd’s Science of Risk prize. We look forward to reading your submissions.”

To apply, candidates must write a letter of no more than 1000 words, which summarises the key findings of the research, why it is relevant to the insurance industry and why the paper is of high quality research.

The applications will be shortlisted based on the summary and then reviewed by a panel of judges including leading academics and senior staff within Lloyd’s. The criteria for judging will include:

• Relevance to the insurance industry;
• Writing style;
• Financial significance – risks that might translate into large profits or losses are important and will be ranked higher;
• Novelty – new risks will score well; and
• Quality of research.

Entries for the 2012 Science of Risk Prize will be accepted under the theme of “Natural World”. £5,000 is being offered for the best research paper in each category, along with £1,000 for the best runner-up. An awards dinner in Lloyd’s historic Adam Room will be held for the winners on 29th November.

The closing date for entries is 28 September 2012.

The application form, full terms and conditions, as well as examples of entries to the 2011 Science of Risk prize can be found here.