An assessment of best practices of extreme weather insurance and directions for a more resilient society

P.G.M.B. Hudson, L.T. de Ruig, M.C. de Ruiter, O.J. Kuik, W.J.W. Botzen, Xavier Le Den, Matilda Persson, Audrey Benoist, Christian Nielsen

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Extreme weather resilience has been defined as being based on three pillars: resistance (the ability to lower impacts), recovery (the ability to bounce back), and adaptive capacity (the ability to learn and improve). These resilience pillars are important both before and after the occurrence of extreme weather events. Extreme weather insurance can influence these pillars of resilience depending on how particular insurance mechanisms are structured. We explore how the lessons learnt from the current best insurance practices can improve resilience to extreme weather events. We employ an extensive inventory of private property and agricultural crop insurance mechanisms to conduct a multi-criteria analysis of insurance market outcomes. We draw conclusions regarding the patterns in the best practice from six European countries to increase resilience. We suggest that requirements to buy a bundle extreme weather event insurance with general insurance packages are strengthened and supported with structures to financing losses through public-private partnerships. Moreover, support for low income households through income vouchers could be provided. Similarly, for the agricultural sector we propose moving towards comprehensive crop yield insurance linked to general agricultural subsidies. In both cases a nationally representative body can coordinate the various stakeholders into acting in concert.
LanguageEnglish
JournalEnvironmental Hazards
DOIs
Publication statusE-pub ahead of print - 22 Apr 2019

Fingerprint

insurance
best practice
weather
resilience
pillar
event
ability
public-private partnership
private property
Society
society
public private partnership
agricultural sector
household income
crop yield
subsidy
stakeholder
low income
income
crop

Keywords

  • Extreme weather
  • Insurance
  • Resilience
  • Climate change adaptation
  • Risk management

Cite this

@article{1adea2cbd654486b9ae7d5253312c796,
title = "An assessment of best practices of extreme weather insurance and directions for a more resilient society",
abstract = "Extreme weather resilience has been defined as being based on three pillars: resistance (the ability to lower impacts), recovery (the ability to bounce back), and adaptive capacity (the ability to learn and improve). These resilience pillars are important both before and after the occurrence of extreme weather events. Extreme weather insurance can influence these pillars of resilience depending on how particular insurance mechanisms are structured. We explore how the lessons learnt from the current best insurance practices can improve resilience to extreme weather events. We employ an extensive inventory of private property and agricultural crop insurance mechanisms to conduct a multi-criteria analysis of insurance market outcomes. We draw conclusions regarding the patterns in the best practice from six European countries to increase resilience. We suggest that requirements to buy a bundle extreme weather event insurance with general insurance packages are strengthened and supported with structures to financing losses through public-private partnerships. Moreover, support for low income households through income vouchers could be provided. Similarly, for the agricultural sector we propose moving towards comprehensive crop yield insurance linked to general agricultural subsidies. In both cases a nationally representative body can coordinate the various stakeholders into acting in concert.",
keywords = "Extreme weather, Insurance, Resilience, Climate change adaptation, Risk management",
author = "P.G.M.B. Hudson and {de Ruig}, L.T. and {de Ruiter}, M.C. and O.J. Kuik and W.J.W. Botzen and {Le Den}, Xavier and Matilda Persson and Audrey Benoist and Christian Nielsen",
year = "2019",
month = "4",
day = "22",
doi = "10.1080/17477891.2019.1608148",
language = "English",
journal = "Environmental Hazards",
issn = "1747-7891",
publisher = "Elsevier BV",

}

An assessment of best practices of extreme weather insurance and directions for a more resilient society. / Hudson, P.G.M.B.; de Ruig, L.T.; de Ruiter, M.C.; Kuik, O.J.; Botzen, W.J.W.; Le Den, Xavier; Persson, Matilda; Benoist, Audrey; Nielsen, Christian.

In: Environmental Hazards, 22.04.2019.

Research output: Contribution to JournalArticleAcademicpeer-review

TY - JOUR

T1 - An assessment of best practices of extreme weather insurance and directions for a more resilient society

AU - Hudson, P.G.M.B.

AU - de Ruig, L.T.

AU - de Ruiter, M.C.

AU - Kuik, O.J.

AU - Botzen, W.J.W.

AU - Le Den, Xavier

AU - Persson, Matilda

AU - Benoist, Audrey

AU - Nielsen, Christian

PY - 2019/4/22

Y1 - 2019/4/22

N2 - Extreme weather resilience has been defined as being based on three pillars: resistance (the ability to lower impacts), recovery (the ability to bounce back), and adaptive capacity (the ability to learn and improve). These resilience pillars are important both before and after the occurrence of extreme weather events. Extreme weather insurance can influence these pillars of resilience depending on how particular insurance mechanisms are structured. We explore how the lessons learnt from the current best insurance practices can improve resilience to extreme weather events. We employ an extensive inventory of private property and agricultural crop insurance mechanisms to conduct a multi-criteria analysis of insurance market outcomes. We draw conclusions regarding the patterns in the best practice from six European countries to increase resilience. We suggest that requirements to buy a bundle extreme weather event insurance with general insurance packages are strengthened and supported with structures to financing losses through public-private partnerships. Moreover, support for low income households through income vouchers could be provided. Similarly, for the agricultural sector we propose moving towards comprehensive crop yield insurance linked to general agricultural subsidies. In both cases a nationally representative body can coordinate the various stakeholders into acting in concert.

AB - Extreme weather resilience has been defined as being based on three pillars: resistance (the ability to lower impacts), recovery (the ability to bounce back), and adaptive capacity (the ability to learn and improve). These resilience pillars are important both before and after the occurrence of extreme weather events. Extreme weather insurance can influence these pillars of resilience depending on how particular insurance mechanisms are structured. We explore how the lessons learnt from the current best insurance practices can improve resilience to extreme weather events. We employ an extensive inventory of private property and agricultural crop insurance mechanisms to conduct a multi-criteria analysis of insurance market outcomes. We draw conclusions regarding the patterns in the best practice from six European countries to increase resilience. We suggest that requirements to buy a bundle extreme weather event insurance with general insurance packages are strengthened and supported with structures to financing losses through public-private partnerships. Moreover, support for low income households through income vouchers could be provided. Similarly, for the agricultural sector we propose moving towards comprehensive crop yield insurance linked to general agricultural subsidies. In both cases a nationally representative body can coordinate the various stakeholders into acting in concert.

KW - Extreme weather

KW - Insurance

KW - Resilience

KW - Climate change adaptation

KW - Risk management

U2 - 10.1080/17477891.2019.1608148

DO - 10.1080/17477891.2019.1608148

M3 - Article

JO - Environmental Hazards

T2 - Environmental Hazards

JF - Environmental Hazards

SN - 1747-7891

ER -