Climate change: What role for insurance?

This brief shows how insurance, including public-private arrangements, play a role in helping vulnerable countries to adapt. After a brief analysis of the future impacts of climate change in the most vulnerable developing countries, this paper studies potential insurance instruments. These instruments offer substantial benefits to low-income countries, both to reduce their vulnerability to weather variability and adapt to climate change. These instruments would require donor support due to large capital-reserve requirements and also the implementation of adapted policies.

IIASA, German Watch - December 2008