Kathmandu. Disasters caused by climate change are increasing exponentially around the world and the rate at which disasters recur is faster than the human and economic capacity to compensate for them. Recently, this issue has been raised seriously in an opinion article written by analyst Arunava Ghosh in the Indian English newspaper ‘Hindustan Times’. <\/p>\n
The current insurance coverage gap has proved to be a major market failure. As a result, less than 30 percent of extreme weather-related losses worldwide are covered by insurance coverage or insurance coverage. Especially in developing regions such as Asia, climate-related disasters cause huge economic losses, but only a small fraction of them are covered by insurance. For example, two catastrophic floods in the same river in the border areas of Nepal and Tibet in the space of 14 months are the latest evidence of this. <\/p>\n
Arunava Ghosh has expressed the view that the traditional models and statistics of the past have become unreliable in the current situation of climate change. The author has put forward 5 main measures to overcome the current changing crisis. <\/p>\n
Review of insurance models: The first step should be to improve the traditional models of risk pricing and incorporate new dimensions and data on disasters. <\/p>\n
Long-term investment and risk engineering: Insurance companies should invest long-term with 2050 in mind. Also, risk engineers should be engaged from the infrastructure design stage so that the structures to be built are climate-friendly and safe. <\/p>\n
Risk Reduction and Strong Infrastructure: Emphasis should be placed on pre-emptive prevention rather than claiming disaster damage. Policies such as discounting insurance premiums for using strong roofs or climate-resilient technologies encourage people to build safer structures. <\/p>\n
Shared use of data and pricing: The government and the insurance sector should use common data to assess risk. This will facilitate policy formulation and insurance premiums. <\/p>\n
Public-Private Partnerships: Public, philanthropic and private sector partnerships are essential to protect the poor and vulnerable from the effects of climate change and reduce the burden of insurance premiums.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Disasters caused by climate change are increasing exponentially around the world and the rate at which disasters recur is faster than the human and economic capacity to compensate for them. Recently, this issue has been raised seriously in an opinion article written by analyst Arunava Ghosh in the Indian English newspaper ‘Hindustan Times’. The […]<\/p>\n","protected":false},"author":5,"featured_media":288017,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45159,45156],"tags":[],"class_list":["post-323149","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-news-en","category-blog-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/323149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=323149"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/323149\/revisions"}],"predecessor-version":[{"id":323150,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/323149\/revisions\/323150"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/288017"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=323149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=323149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=323149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}