There is growing recognition of the important multi-faceted role that the insurance industry can play in enhancing the resilience of individuals, businesses, communities and nations to climate change and other natural catastrophes.
The insurance industry’s capabilities include: (1) risk assessment – modelling, mapping, analyzing risk exposure metrics, (2) risk mitigation and loss prevention pre-event, (3) risk transfer via insurance, reinsurance, and related capital markets vehicles (e.g., catastrophe bonds), (4) loss recovery– including the expedited release of recovery funds post event and (5) institutional investor, particularly in resilient infrastructure.
Taken together, the ability to deploy these wide-ranging benefits will be critical to protecting the most at-risk communities and countries. For these benefits to be realized, however, it is critically important to have the right legal, regulatory and government policy environment in place. This report provides an overview of the myriad of laws, regulations and policies that are relevant to creating this enabling environment.
