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Insurance against extreme weather events: An overview

Urheber*innen
/persons/resource/kati.kraehnert

Kraehnert,  Kati
Potsdam Institute for Climate Impact Research;

Osberghaus,  Daniel
External Organizations;

Hott,  Christian
External Organizations;

/persons/resource/Habtemariam

Habtemariam,  Lemlem Teklegiorgis
Potsdam Institute for Climate Impact Research;

Wätzold,  Frank
External Organizations;

Hecker,  Lutz Philipp
External Organizations;

/persons/resource/Svenja.Fluhrer

Fluhrer,  Svenja
Potsdam Institute for Climate Impact Research;

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Zitation

Kraehnert, K., Osberghaus, D., Hott, C., Habtemariam, L. T., Wätzold, F., Hecker, L. P., Fluhrer, S. (2021): Insurance against extreme weather events: An overview. - Review of Economics, 72, 2, 71-95.
https://doi.org/10.1515/roe-2021-0024


Zitierlink: https://publications.pik-potsdam.de/pubman/item/item_25998
Zusammenfassung
Extreme weather events increasingly threaten the economic situation of households and enterprises around the world. Insurance against extreme weather events is among the climate change adaptation instruments that are currently discussed by the policy community. This overview paper provides a synopsis of the state of research on insurance against extreme weather events, outlining advantages and limitations inherent in three main types of insurance: indemnity-based insurance, index-based insurance, and insurance-linked securities. The paper discusses issues related to insurance uptake, distributional effects, misleading incentives and potentially negative side effects, as well as the role of the state.