• Login
  • Register
  • Search

The Importance of Scientific Research: the Case of Insurance for Climate Change

Donatella Porrini

Abstract


Climate change is likely to cause extreme weather events in the world with the consequence of an increased number of natural catastrophes. The expected damages pose serious challenges to governments in terms of policy choice and a crucial point is to define the role can be played by insurance sector, particularly as a tool to reduce potential damage, as well as to stimulate mitigation. Scientific research and good knowledge of risk are necessary in guiding policy decisions to manage the risks deriving from climate change. In this direction, the author analyses the fact that risks connected with climate change and the potential contribution of the insurance sector need to be analysed by scientific research in order to plan the correct risk management strategies in the future.


Keywords


climate change; insurance; risk management; natural catastrophes

Full Text:

PDF

References


Bubeck P., W. J. W. Botzen, J. C. J. H. Aerts (2012), A Review of Risk Perceptions and Other Factors that Influence Flood Mitigation Behavior, Risk Analysis, Vol. 32, No. 9, 2012 DOI: 10.1111/j.1539-6924.2011.01783.x, pp. 1481-1495.

Carraro C. (2016), Climate change and agricultural losses: what role for insurance?, http://www.carlocarraro.org/en/topics/finance/climate-change-and-agricultural-losses-what-role-for-insurance/

Eiser J. R., Bostrom A., Burton I., Johnston D. M., McClure J., Paton D., Van der Pligt J., White M. P. (2012), Risk interpretation and action: A conceptual framework for responses to natural hazards, International Journal of Disaster Risk Reduction, pp. 5–16.

Geneva Association (2009), The Insurance Industry and Climate Change, Geneva, The Geneva Reports – Risk and Insurance Research, n. 2, July.

Ghesquiere F., Mahul, O. (2007), Sovereign Natural Disaster Insurance for Developing Countries: a Paradigm Shift in Catastrophe Risk Financing Policy, Research Working Paper 4345, World Bank, Washington D.C.

Grossi P., H. Kunreuther (eds) 2005. Catastrophe Modeling: A New Approach to Managing Risk, Boston: Kluwer Academic Publishers.

IPCC (2014), Climate Change 2014 - Synthesis Report Summary for Policymakers.

Kleindorfer P. (2010), Interdependency of Science and Risk Finance in Catastrophe Insurance and Climate Change, INSEAD Working Papers, 02/2010.

Kunreuther H. (1996), Mitigating disaster losses through insurance, Journal of Risk and Uncertainty, 12, pp. 171–187.

Kunreuther H., Pauly, M. (2004), Neglecting Disaster: Why Don’t People Insure Against Large Losses?, Journal of Risk and Uncertainty 28(1), pp. 5-21. http://doi:10.1023/B:RISK.0000009433.25126.87

Mills, E. (2009). From risk to opportunity: Insurers responses to climate change, CERES Report, April.

Pidgeon N.F. (1998), Risk assessment, risk values and the social science programme: why we do need risk perception research, Reliability Engineering and System Safety, 59, pp. 5-15.

Porrini D., Schwartze R. (2014), Insurance models and European climate change policies: an assessment, European Journal of Law and Economics, 38, n. 1, pp. 7-28.

Surminski S., Aerts J.C.J.H., Botzen W.J.W., Hudson P., Mysiak J., Pérez-Blanco C.D. (2015), Reflections on the current debate on how to link flood insurance and disaster risk reduction in the European Union. Nat. Hazards 79, pp. 1451–1479. doi:10.1007/s11069-015-1832-5




DOI: http://dx.doi.org/10.18686/fm.v2i2.970

Refbacks