Natural hazards and insurance

One of the most unexpected things that developed in the course of my research on environmental change and cities was that I started analyzing how insurance facilitates adaptation – or fails to do so. Together with my research partners, I published my results based on various case studies. State institutions or private market corporations can provide insurance against natural hazards, they can offer incentives for adaptation (cf. through the NFIP provided by FEMA in the USA), and they sometimes demand that their insurance holders rebuild the status quo ante (cf. Ahrtal, Germany). The latter neither reduces risk nor vulnerability, both key tenets of the Sendai Framework. Now, a Member of the Board of Management of German insurance company Allianz SE posted a startling article at Linkedin on the possible impact of climate change not only on insurance companies, but the entire global economic system. In the article, the alternative to reducing or avoiding climate impacts, i.e. "busine...