Barriers and Opportunities
Edited by Rosemary Lyster and Robert R.M. Verchick
This chapter is motivated by the fact that under the influence of climate disasters, the world is exposed to more and more catastrophe risks and the disasters have generated increasing losses. Among the many solutions, this chapter focuses on insurance, which has received increased attention due to its emphasis on risk management, and explores the role of insurance in adapting to and mitigating climate change. The authors argue that private insurance can act not only as a form of post-disaster compensation which may help potential victims to adapt to climate change, but also as a form of private regulation — a contractual device controlling and motivating behavior to avoid the occurrence of climate change losses.
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