Insurance only part of disaster resilience, says climate change panel


  • 2013•03•07     The Guardian

    Excerpt from a Guardian development network article:

    “Insurance – if designed properly – can help incentivise loss reduction and resilience-building activities,” climate-risk insurance expert Koko Warner of UN University said…

    She argues that insurance can “create more certainty in decision-making. Studies of poverty and development show that many people avoid investment in ‘positive’ things … often because of uncertainty around the weather. If a household invests, and then a crop fails, they … often are burdened with debt. Children (particularly girls) are sometimes pulled out of school, and an erosive string of coping mechanisms ensues.”