Why (most) climate insurance schemes are a bad idea

  title={Why (most) climate insurance schemes are a bad idea},
  author={G{\"o}ran Duus-Otterstr{\"o}m and Sverker C. Jagers},
  journal={Environmental Politics},
  pages={322 - 339}
Various insurance schemes are increasingly considered as part of a comprehensive set of responses aimed at adapting the world to future climate change. Insurance is believed to provide resources needed to rebuild societies following adverse effects of extreme weather events, and do so in a way that encourages preventive, risk-reducing action. After investigating the idea of climate insurance from a normative standpoint, it is argued that when understood conventionally – i.e. commercially… Expand
Insurance and climate-driven extreme events
We investigate how insurance affects agents’ decisions when being faced by endogenous, climate-driven extreme events. This is not only important in order to understand how the possibility ofExpand
Insurance models and climate risk assessments in a historical context
Adaptation to the consequences of climate change has developed into a growing field of concern for the insurance business. However, climate-related risk is not entirely a new field in insurance.Expand
Responsibility for the Past? Some Thoughts on Compensating Those Vulnerable to Climate Change in Developing Countries
The first impacts of climate change have become evident and are expected to increase dramatically over the next decades. Thus, it becomes more and more pressing to decide who has to compensate thoseExpand
Privatizing climate adaptation: How insurance weakens solidaristic and collective disaster recovery
As losses from extreme weather events grow, many governments are looking to privatize the financing and incentivization of climate adaptation through insurance markets. In a pure market approach toExpand
Why Do Few Homeowners Insure Against Natural Catastrophe Losses?
Abstract Insurance has been suggested as a policy instrument that can help in managing the rising economic cost of natural catastrophes. Evidence, however, shows that many homeowners do not insureExpand
The Role of Microinsurance as a Safety Net Against Environmental Risks in Bangladesh
The Intergovernmental Panel on Climate Change (IPCC) identifies Bangladesh as one of the countries that will be hardest hit by the anticipated effects of climate change. The poorest people are theExpand
Insurance engagement in flood risk reduction – examples from household and business insurance in developed countries
Abstract. Insurance can be an important mechanism to stimulate flood risk reduction and thus decrease losses. However, there is a gap between the theoretical potential described by academic scholarsExpand
Compensating for Climate Change Loss and Damage
With the adoption of the Warsaw International Mechanism in 2013, the international community recognised that anthropogenic climate change will result in a range of adverse effects despite policies ofExpand
Identifying burdens of coping with climate change: A typology of the duties of climate justice
One of the central questions in climate change debates concerns fair burden-sharing, i.e. justice in the distribution of costs of undertaking climate-managing policies. In this paper it is arguedExpand
Catastrophic fixes: cyclical devaluation and accumulation through climate change impacts
This paper investigates the scales and temporalities through which climate change impacts may be rendered into socio-ecological fixes for crises of overaccumulation within the (re)insurance industry.Expand


Insurance in a Climate of Change
Insurers are well positioned to participate in public-private initiatives to monitor loss trends, improve catastrophe modeling, address the causes of climate change, and prepare for and adapt to the impacts. Expand
Insurance for assisting adaptation to climate change in developing countries: a proposed strategy
Abstract This paper suggests a two-tiered climate insurance strategy that would support developing country adaptation to the risks of climate variability and meet the intent of Article 4.8 of theExpand
Insurance, Developing Countries and Climate Change
By providing financial security against droughts, floods, tropical cyclones and other forms of weather extremes, insurance instruments present an opportunity for developing countries in theirExpand
A Global Review of Insurance Industry Responses to Climate Change
A vanguard of insurers is adapting its business model to the realities of climate change. In many ways, insurers are still catching up both to mainstream science and to their customers, which, inExpand
Scientific and economic rationales for innovative climate insurance solutions
Abstract The scientific and economic rationales for climate insurance solutions are provided in the context of global adaptation to climate change. Drawing on the growing body of scientific evidenceExpand
Distributing the burdens of climate change
Global climate change raises many questions for environmental political theorists. This article focuses on the question of identifying the agents that should bear the financial burden of preventingExpand
Fairness in Adaptation to Climate Change
As a global society, we need to take action not only to prevent the potentially catastrophic effects of climate change but also to adapt to the unavoidable effects of climate change already imposedExpand
The Politics of Redistributive Social Insurance
This paper analyses the political support for a social insurance that includes elements of redistribution when there exists an imperfect private insurance alternative. Individuals differ both inExpand
Dual climate change responsibility: on moral divergences between mitigation and adaptation
In this paper it is argued that climate change adaptation poses different moral questions than mitigation. Proceeding from a ‘hybrid’ model recently advanced by Simon Caney, an analytical frameworkExpand
Fair adaptation to climate change
Abstract This article identifies social justice dilemmas associated with the necessity to adapt to climate change, examines how they are currently addressed by the climate change regime, and proposesExpand