A novel multistage risk management applied to water-related disaster using diversity of measures: A theoretical approach

Gesualdo

et al. 2023

Preprint

As the global economy expands, increasing losses of natural capital translate into substantially higher costs and inefficiencies in achieving future water security. Risk transfer is one risk management tools used to protect regions particularly vulnerable to the effects of extreme events that affect water availability. Index insurance has been investigated as a potential solution for dealing with drought events that lead to water scarcity in the water supply sector. Nonetheless, water scarcity can result not only from drought but also from the degradation of quality. Floods also have an impact on water supply, resulting in economic losses for the supply sector. Water supply services are under threat from a variety of hazards intensified by extremes of climate variability and climate change and socioeconomic factors. This work aims to discuss index insurance adaptation to cover financial losses incurred by water utility companies as a result of a variety of extreme hydrological events and uncertainty drivers, bringing opportunities to improve index insurance application to the sector. Given the complex vulnerability to different hazards related to the quantity and quality of raw water, in addition to the drivers of uncertainty affecting water availability, improved risk transfer model application is still required to incorporate such multiple risks and uncertainties. Many gaps and limitations in the design and implementation of water infrastructure insurance remain, including improved characterization of the relationship between droughts, floods, and pollution extremes and their implications in financial losses for supply; and the development of damage quantification methodologies, among other issues.

Section: Introductionmentioning

confidence: 99%

A prospective analysis of index insurance as a risk management strategy to hedge hydrological extremes for water utilities

Gesualdo

et al. 2023

Preprint

“…As response to this gap and the second specific objective of this thesis, which was to propose a conceptual framework for multi-hazard risk transfer model for climate extremes, we described a conceptual framework aggregating and contextualizing the literature providing examples of its use and how I can be applied. This conceptual framework also integrates methodologies that have been applied in the Water Adaptive Design and Innovation Laboratory (WADI-Lab) by ; ; Mohor e Mendiondo (2017) and are being further applied to new studies in the context of insurance design for other applications, such as multi-hazard threats to water supply companies (da Silva et al, 2023a;Gesualdo et al, 2022), urban flooding (Navarro et al, 2021), multipurpose reservoirs, and others.…”

Section: Discussionmentioning

confidence: 99%

Development of index insurance under the dynamics of multi-hazard risk in the context of climate change

Benso

“…The National Water Security Plan (PNSH) outlines a set of water infrastructure improvements including dams, water piping, and adduction systems to be implemented by 2035 (ANA -Agência Nacional de ÁguasA, 2019). While investing in infrastructure is necessary, non-structural adaptation measures have gained recognition for their role in enhancing water security and building resilience in the face of water-related challenges (POUSSIN et al, 2012;NAVARRO et al, 2021). The literature suggests several non-structural adaptation measures that are particularly relevant for Brazil such as nature-based solutions (NBS) (MACEDO; LAGO; MENDIONDO, 2019), water reuse and recycling systems (LIMA et al, 2021), and the development of early warning systems (HORITA; ALBUQUERQUE; MARCHEZINI, 2018).…”

Section: General Introductionmentioning

confidence: 99%

“…In economic terms, between 1995 and 2014, direct losses related to drought and flood events in Brazil are estimated at BRL 9 billion per year (ANA -Agência Nacional de Águas (Brasil), 2017). These economic losses can be minimized and compensated through adaptive tools, such as insurance against extreme weather events, as cited by (NAVARRO et al, 2021). In this context, insurance prevents financial losses from turning into long-term economic losses (SEIFERT-DäHNN, 2018).…”

Section: Introductionmentioning

confidence: 99%

Adaptation measures for increasing water security in basins under change

Gesualdo

16/2014. Their financial support not only alleviated the financial burdens associated with pursuing this degree but also enabled me to focus wholeheartedly on my research endeavors.I would like to acknowledge the countless individuals, mentors, friends, and family members who have supported me emotionally and intellectually throughout this academic journey. Their unwavering belief in my abilities and their encouragement during challenging times have been crucial to my success. To all those mentioned above and to those whose names might have been inadvertently omitted, please accept my heartfelt gratitude for your support, encouragement, and contributions. This work would not have been possible without you, and I am truly privileged to have had the opportunity to work with and learn from such exceptional individuals.Lastly, I would like to dedicate a special paragraph to express my deepest gratitude and appreciation to my parents (Hirtes and Antonio) and my sister (Isabela). Their unwavering love, encouragement, and sacrifices throughout my academic journey have been the cornerstone of my success. From the earliest stages of my education, they instilled in me a strong work ethic, a thirst for knowledge, and the belief that I could accomplish anything I set my mind to. Their constant support, emotional strength, and unwavering belief in my abilities have been a constant source of inspiration and motivation. I am truly grateful for their endless encouragement, understanding, and sacrifices, which have allowed me to pursue my dreams and reach this significant milestone in my academic career. Thank you for being my pillars of strength and for always believing in me."Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less" Marie Curie ABSTRACT GESUALDO, G. C. Adaptation measures for increasing water security in basins under change. 2023. 111p. Tese