Climate change and weather-related disasters: what role for insurance, reinsurance and financial sectors?

The adverse impacts associated with extreme weather events have increased over the past few decades, and this appears to be due to several factors, including climate change and global warming. The design and implementation of effective financial management strategies to deal with the increasing costs of natural disasters has become a top priority for governments in developed and emerging economies. This paper discusses possible roles of insurance, reinsurance and financial sector participants from a public policy perspective, with a view to understanding how they can contribute to the achievement of the designated policy goal.