Insurance schemes to increase climate resilience – lessons learned

Provide incentives to reduce risk and close the insurance gap. 

Climate change increases the risk of being affected by natural disasters. As a result, dealing with the consequences requires major financial efforts to compensate for losses, and in this context, insurance has attracted much attention lately as a tool in climate risk management. In addition to financial compensation for losses after an extreme weather event, insurance can provide incentives to reduce risk, and potential investors often ask for insurance to save their investment.