GSS EU Science Funding Gateway

Insurance, in combination with other risk transfer and financing mechanisms, is an important tool to achieve disaster risk reduction targets. Insurance plays an important role in financially supporting the recovery of individuals, organisations, businesses and communities affected by natural disasters. Large disaster losses in recent years have led insurance companies to re-examine their approach to increase the extent of insurance coverage and compensation for loss in vulnerable areas. This includes increasing their investment in assessing and modelling risk, developing advice on risk prevention and establishing new forms of coverage to support governments in managing the costs they face in post-disaster recovery. Questions remain about the limits of insurance in tackling fast-rising threats – not only how people at highest risk and with lower incomes can afford it, but whether insurance models can cope with much more frequent and destructive. Rethinking insurance pay-outs, giving homeowners clearer information on potential risks – using simple online tools, or providing data at the time of house purchases – may also be the way forward more resilient communities.