Many natural disaster insurance markets were designed under historical distributions of climate risk that differ from those prevailing today. These differences create challenges for natural disaster insurance markets to mitigate the effects of climate change and also increase demand for innovative policy solutions.
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I am grateful for helpful discussions with M. Duggan, M. Fowlie, M. Kotchen and J. Shapiro.
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Wagner, K.R.H. Designing insurance for climate change. Nat. Clim. Chang. 12, 1070–1072 (2022). https://doi.org/10.1038/s41558-022-01514-2
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DOI: https://doi.org/10.1038/s41558-022-01514-2
