Skip to main content

Thank you for visiting nature.com. You are using a browser version with limited support for CSS. To obtain the best experience, we recommend you use a more up to date browser (or turn off compatibility mode in Internet Explorer). In the meantime, to ensure continued support, we are displaying the site without styles and JavaScript.

  • Comment
  • Published:

Using the adaptive cycle in climate-risk insurance to design resilient futures

Assessing the dynamics of resilience could help insurers and governments reduce the costs of climate-risk insurance schemes and secure future insurability in the face of an increase in extreme hydro-meteorological events related to climate change.

This is a preview of subscription content, access via your institution

Relevant articles

Open Access articles citing this article.

Access options

Rent or buy this article

Prices vary by article type

from$1.95

to$39.95

Prices may be subject to local taxes which are calculated during checkout

Fig. 1: The adaptive cycle (ACY) applied to climate-risk insurance.

References

  1. Hoeppe, P. Weather Clim. Extremes 11, 70–79 (2016).

    Article  Google Scholar 

  2. Surminski, S. IRERE 7, 241–278 (2014).

    Article  Google Scholar 

  3. Schwarze, R. & Wagner, G. G. Geneva Pap. Risk Insurance Iss. Practice 29, 154–168 (2004).

    Article  Google Scholar 

  4. Herweijer, C., Ranger, N. & Ward, R. E. Geneva Pap. Risk Insurance Iss. Practice 34, 360–380 (2009).

    Article  Google Scholar 

  5. Penning-Rowsell, E. C., Priest, S. & Johnson, C. Int. J. Water Resour. Dev. 30, 694–713 (2014).

    Article  Google Scholar 

  6. Surminski, S. Fit for the future? The Reform of Flood Insurance in Ireland: Resolving the Data Controversy and Supporting Climate Change Adaptation (Grantham Research Institute on Climate Change and the Environment, London, 2017).

  7. Dixon, L. et al. Flood Insurance in New York City Following Hurricane Sandy (Rand Corporation, Santa Monica, 2013).

  8. Lamond, J. & Penning-Rowsell, E. Clim. Risk Manag. 2, 1–10 (2014).

    Article  Google Scholar 

  9. The Impact of Climate Change on the UK Insurance Sector (Bank of England, Prudential Regulation Authority, London, 2015).

  10. IPCC Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation (eds Field, C. B. et al.) (Cambridge, UK, 2012).

  11. Holling, C. S. in Sustainable Development of the Biosphere (eds Clark, W. C. & Munn R. E.) (Cambridge, 1986).

  12. UNEP Finance Initiative. Collaborating for Resilience: Partnerships that Build Disaster-Resilient Communities and Economies (Principles for Sustainable Insurance Global Resilience Project, Sydney, 2015).

  13. A New World of Opportunity: The Insurance Innovation Imperative (KMPG, 2015).

  14. Surminski, S. & Eldridge, J. J. Flood Risk Manag. 10, 415–435 (2015).

  15. United Nations International Strategy for Disaster Reduction. Sendai Framework for Disaster Risk Reduction 2015–2030 (World Conference on Disaster Risk Reduction, Sendai, 2015).

  16. Erdlenbruch, K., Thoyer, S., Grelot, F., Kast, R. & Enjolras, G. J. Environ. Manage. 91, 363–369 (2009).

    Article  CAS  Google Scholar 

  17. Mills, E. From Risk to Opportunity Insurer Responses to Climate Change (CERES Report, 2009).

  18. Paudel, Y., Botzen, W. J. W., Aerts, J. C. J. H. & Dijkstra, T. K. J. Flood Risk Manag. 8, 116–134 (2015).

    Article  Google Scholar 

Download references

Acknowledgements

The authors thank W. Botzen, C. Folke, B.J. Hoskins, D. Jacob, R.J.T. Klein, M. Carmona, A.K. Bhowmik and B. Steuri for suggestions and comments, and gratefully acknowledge M. Fischer-Lindenberg’s graphic support. The authors acknowledge funding by EU 7th Framework Programme through the project ENHANCE (Enhancing Risk Management Partnerships for Catastrophic Natural Hazards in Europe) under grant agreement no. 308438.

Author information

Authors and Affiliations

Authors

Contributions

R.C., S.S., M.M.C. and P.H. conceived the application of the adaptive cycle to climate-risk insurances. S.S., P.H., P.S. and J.G. analysed and discussed the implications for climate-risk insurance. R.C., S.S., M.M.C. and P.H. outlined and drafted the manuscript. All authors substantially reflected upon the manuscript and greatly commented on it.

Corresponding author

Correspondence to R. Cremades.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Cremades, R., Surminski, S., Máñez Costa, M. et al. Using the adaptive cycle in climate-risk insurance to design resilient futures. Nature Clim Change 8, 4–7 (2018). https://doi.org/10.1038/s41558-017-0044-2

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1038/s41558-017-0044-2

Search

Quick links

Nature Briefing

Sign up for the Nature Briefing newsletter — what matters in science, free to your inbox daily.

Get the most important science stories of the day, free in your inbox. Sign up for Nature Briefing