Engineering Commons^™

Climate Change And Market-Based Insurance Feedbacks, Eric R. Holley, Adam Liska, Cory Walters, Geoffrey C. Friesen, Michael Hayes, Max J. Rudolph, Donald A. Wilhite

Adam Liska Papers

Climatic events have accounted for 91% of $1.05 trillion in insured costs for global catastrophic events from 1980 to 2016. Costs are driven by socio-economic development and increased frequency and severity of climatic disasters driven by climate change. Government policies to reduce systemic risk (e.g., cap-and-trade, carbon tax) have been a predominant approach for mitigation and adaptation. Alternatively, market-based incentives for climate change adaptation and mitigation already operate via the insurance industry to lessen impacts on society. Insurance feedbacks include changes in 1) premiums and insurance policies, 2) non-coverage, and 3) policy making and litigation. Alongside government policies, insurance feedbacks …