Insurance, Developing Countries and Climate Change

Linnerooth-Bayer, J.; Warner, Koko; Bals, Christoph; Höppe, P.; Burton, Ian; Loster, Thomas; Haas, Armin

doi:10.1057/gpp.2009.15

Cited by 39 publications

(27 citation statements)

References 18 publications

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“…Insurance can potentially play a significant role in developing countries trying to adapt to climate change (Linnerooth-Bayer et al 2009). Insurance might help vulnerable countries adapt to climate change by mitigating the effects of weather disasters.…”

Section: Managing Weather and Climate Risks With Derivatives And Insumentioning

confidence: 99%

Impacts of a Changing Climate on Economic Damages and Insurance

Franzke¹

2017

EconDisCliCha

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Weather and climate extremes cause huge economic damages and harm many lives each year (∼35000/year). There is evidence that some types of weather and climate extremes, like heat waves and flooding, have already increased or intensified over the last few decades, and climate projections reveal a further intensification for many types of weather and climate extremes in many regions though the uncertainties still remain large. While there is evidence for increases in economic losses it is uncertain whether this is due to an increase in the number and intensity of extreme events or can be attributed to socio-economic changes. However, there is agreement that the increasingly complex and internationally distributed supply chains of global companies make them more vulnerable to extreme weather events. It is also thought that global warming will adversely affect the global food supply chain and especially developing countries. Here I survey how weather and climate extremes impact our economies and how we can mitigate their impacts using financial and insurance products.

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Section: Managing Weather and Climate Risks With Derivatives And Insumentioning

confidence: 99%

Impacts of a Changing Climate on Economic Damages and Insurance

Franzke¹

2017

EconDisCliCha

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“…Linnerooth‐Bayer et al . () and Cummins () did not intend to prove the crowding‐out effect on particular data, but they assumed the concept to be valid throughout the discussion. Linnerooth‐Bayer et al .…”

Section: Relevance Of the Crowding‐out Effect For Flood Governance Anmentioning

confidence: 99%

Effects of government flood expenditures: the problem of crowding‐out

Slavíková

2016

J Flood Risk Management

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Large inland floods represent a serious threat to the Central European territory. It is therefore necessary to develop efficient flood‐risk management based on shared responsibility, stressing the importance of the self‐engagement of local actors (such as municipalities, household, etc.). Central government flood expenditures are an influential factor that shapes their motivation and expectations. In this context, the article investigates the relevance of the concept of crowding out. In particular, it search for the reflection of the concept in the flood governance literature. A thorough review of Web of Science sources in the past 20 years has been undertaken in this matter. Furthermore, the intention is to discuss the problem of data availability (especially regarding flood expenditures of central governments) for assessing the crowding‐out effect on a macroeconomic basis. The Czech central government's activity after the disastrous floods of 1997 and 2002 is used as a case study.

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“…Data availability is a serious issue for health insurers; they are 23 See Arena (2008) for a discussion of the link between insurance market development and economic growth. 24 See, for example, Asfaw and Ju¨tting (2007) for health risks and Linnerooth-Bayer et al (2009) for catastrophe risk. 25 The self-employed women association and UpLift India utilise the integration of microfinance and microinsurance activities in India (Acharya and Ranson, 2005;Dror et al, 2009a).…”

Section: Randomness Of Loss Occurrencementioning

confidence: 99%

Insurability in Microinsurance Markets: An Analysis of Problems and Potential Solutions

Biener

Eling

2012

Geneva Pap Risk Insur Issues Pract

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This paper provides a comprehensive analysis of the insurability of risks in microinsurance markets. Our aim is to enhance the understanding of impediments to and facilitators of microinsurance from an economic perspective and outline potential solutions. The motivation for conducting this analysis arises from two important aspects. (1) Despite strong growth of microinsurance markets in recent years, more than 90 per cent of the poor population in developing countries have limited or no access to insurance.(2) Industry practitioners frequently highlight problems in the insurability of risks that hinder the development of microinsurance. We review 131 papers and find that the most severe problems stem from insufficient resources for risk evaluation, small size of insurance groups, information asymmetries and the size of the insurance premium. On the basis of the analysis, we discuss a number of potential solutions such as, for example, a cooperative microinsurance architecture. The Geneva Papers (2012) 37, 77-107. doi:10.1057/gpp.2011.29 Keywords: microinsurance; insurability; moral hazard; adverse selection IntroductionThe aim of this paper is to conduct a systematic analysis of the insurability of risks in microinsurance markets, point out critical aspects that hinder their development and outline potential solutions to problems in these markets. Microinsurance is commonly defined as a financial arrangement intended to protect low-income people against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk involved. 1 The microinsurance industry has seen strong growth in recent years, with average annual growth rates of approximately 10 per cent. 2 Industry practitioners, however, estimate that only 5 per cent of the potential market is covered, and that there is a high degree of variability in terms of risk and geographical coverage, leaving large segments of the world's poor population with limited or no access to insurance. 3 1 See Churchill (2007). There exist two widespread definitions of microinsurance. Churchill (2007) refers to microinsurance as insurance for low-income people. Dror and Jacquier (1999) define microinsurance as financially autonomous schemes operating at the local level. Throughout this paper, we refer to the definition by Churchill (2007), but also integrate the aspect that microinsurance is typically operated in small locally focused insurance schemes. 2 See Lloyd's and Microinsurance Centre (2009). 3 See Roth et al. (2007). The Geneva Papers, 2012, 37, (77-107) Providing insurance in developing countries is subject to a large array of problems, many of which are frequently addressed in practitioner studies. 4 These studies reveal numerous problems with insurability, including moral hazard, adverse selection, correlated risks, high transaction costs and lack of data, making microinsurance challenging from an economic perspective. Whereas insurability is relevant in all insurance markets, the crucial question in the case of...

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Insurance, Developing Countries and Climate Change

Cited by 39 publications

References 18 publications

Impacts of a Changing Climate on Economic Damages and Insurance

Impacts of a Changing Climate on Economic Damages and Insurance

Effects of government flood expenditures: the problem of crowding‐out

Insurability in Microinsurance Markets: An Analysis of Problems and Potential Solutions

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