Climate Change and Insurance Disaster Risk Financing in Developing Countries

Climate change brings about a new set of major economic risks arising from changing weather patterns, extreme weather events and rising sea levels. Most at risk are developing countries who, despite considerable post-disaster donor aid, have been bearing the major brunt of disaster-related losses. One adaptation solution that is rapidly gaining the support of countries and international donors is a risk transfer to the global reinsurance and capital markets.

This volume, a special issue of the journal Climate Policy, explores the role that insurance-based mechanisms can play in helping developing countries prepare for climate change. It offers a unique and comprehensive perspective on the potential role of insurance solutions in global adaptation to climate change and attempts to engender debate on the role of insurance in reducing global emissions and encouraging climate-friendly corporate behaviour.

Foreword Introduction and Executive Summary Scientific and Economic Rationales for Innovative Climate Insurance Solutions Insurance for Assisting Adaptation to Climate Change in Developing Countries: A Proposed Strategy Insuring the Uninsurable: Design Options for a Climate Change Funding Mechanism The Role of the Private Market in Catastrophe Insurance The Indian Insurance Industry and Climate Change: Exposure, Opportunities and Strategies Ahead Can Insurance Deal with Negative Effects Arising from Climate Policy Measures? Conclusions and Recommendations

Eugene Gurenko is a Lead Insurance Specialist at the Insurance Practice of the World Bank. His most recent projects include risk assessments and the design of catastrophe risk transfer solutions for Turkey, Romania, Bulgaria, Iran, the Caribbean islands, and India. He holds a Ph.D. from Columbia University, and professional designations of Chartered Property Casualty Underwriter (CPCU) and Associate in Reinsurance (ARe).
Michael Grubb is Editor-in-Chief of Climate Policy, Chief Economist at The Carbon Trust (UK), Senior Research Associate at the Faculty of Economics, University of Cambridge, and Visiting Professor at the Centre for Environmental Policy, Imperial College London.