Swenja Surminski|Delioma Oramas-Dorta
Flood insurance schemes and climate adaptation in developing countries
London School of Economics and Political Science|London School of Economics and Political Science
risk transfer including insurance widely recognized tool increasing financial resilience severe weather events floods application mechanism varies widely across countries range different types schemes operation analytical focus far markets long tradition insurance still clear gap understanding mechanism works developing country context paper assesses 27 insurance schemes transfer risk economic losses arising floods lowand middle income countries focusing linkages financial risk transfer risk reduction aspect important avoid effect moral hazard gained particular relevance context climate change adaptation discourse scholars practitioners view insurance potential tool current risks also address projected future impacts changing climate incentivizing risk reduction therefore look beyond pure financial risk transfer nature 27 insurance schemes investigate prevention risk reduction elements analysis suggests potential utilizing risk transfer risk reduction far exhausted schemes showing operational link risk transfer risk reduction effectiveness implementation ground remains unclear dearth linkages risk reduction insurance missed opportunity efforts address rising risk levels particularly context climate change rising risk levels pose threat insurability floods insurance without risk reduction elements could lead moral hazard therefore closer linkage risk transfer risk reduction could make sustainable robust tool