Recovery, Renewal, Resilience

Lessons for Resilience

Consider climate insurance as a risk transfer process to protect communities and build resilience
Topic:
Environment
Keywords:
Resilience to climate change
Content:

COVID-19 has shown that existing planning and programmes are much more accustomed to respond to immediate, tangible local risks, and consistently struggle to anticipate and respond to global risks such as climate risks. A recent report examines how financial tools, namely insurance, could make vulnerable communities more resilient in the face of escalating climate impacts. Consider that climate insurance could:

When planning the design and pricing of climate insurance, consider:

      • Conducting a risk assessment to develop a robust and evidence-based understanding of risk and the strategies that are required to mitigate and prepare for risk
      • If evolving hazards have been taken into account – e.g. risk assessments should look forward and assess how risks are evolving in light of climate change
      • If risk communications are effective e.g. are individuals fully informed so they can make informed decisions about insurance?
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