Using insurance in adaptation to climate change

Climate change is happening. We are reminded of it through an increase in frequency and destructive force of extreme weather events around the globe. Dealing with the consequences requires major financial efforts to compensate for losses. Insurance has attracted much attention as a tool in climate risk management in this context. In addition to financial compensation for losses after an extreme weather event, insurance can provide incentives to reduce risk. This brochure presents the main findings of a study into insurance mechanisms dealing with climate-related extreme weather events.