Microinsurance and the New Market for Climate Equity
Much of the talk about climate change adaptation has focused on investment — in things such as stronger infrastructure, renewable energy, microgrids and disaster response capabilities. But another area could be just as important in helping communities in the developing world bounce back from climate change impacts: insurance.
The worst effects of climate change will hit the developing countries of the global South hardest, according to the Intergovernmental Panel on Climate Change’s 2013 Fifth Assessment Report.
Last month’s historic international climate change agreement coming out of the United Nations COP21 climate talks in Paris may help soften the blow through increased mitigation, but the world’s most vulnerable regions still will need to steel themselves against such extreme weather events as hurricanes, heat waves, droughts, heavy downpours and floods.