Does Flood Insurance Distract from Real Solutions?

The main response to a climate catastrophe,particularly in developed nations, is insurance payouts; however, a new study argues that insurance solutions represent a barrier to finding more beneficial responses to loss and damage. The study, published by Heinrich Böll Stiftung North America,suggests that insurance costs are unfairly weighted towards developing nations which is contrary to the UN agreements principle of "polluter pays”. In other words, the countries that are most vulnerable to climate change induced weather events contribute the least to their forming but are expected to pay the most in terms of insurance payouts. The paper argues that a paradigm shift is required, shifting away from insurance payouts as a solution, to incorporate other approaches to loss and damage such as national contingency funds, social protection programs, social safety nets, and direct cash transfers to increase the underlying resilience of communities (read more here).