Climate Change and Financial Instruments to Cover Disasters: What Role for Insurance?
University of Connecticut - School of Law; Boston College - Law School; China University of Political Science and Law
June 16, 2015
The Role of Law and Regulation in Sustaining Financial Markets 222-248 (London: Routledge, Niels Philipsen et al., eds., 2015).
Boston College Law School Legal Studies Research Paper No. 405
Global climate change has caused many weather-related catastrophes in the world, and the losses have been increasing dramatically during past years. Various legal and business mechanisms and tools can be used to manage catastrophe risks and cover catastrophe losses, such as insurance, government subsidies, and risk sensitization. In theory, private insurance can be an efficient financial instrument to cover disasters. In practice, private insurance plays an important role indeed in developed countries such as the United States. This chapter further addresses the question: taking into account China’s transition economy and specific socialism system, what is the role of private insurance to cover disasters and how does it distribute catastrophe risks. Furthermore, I will propose that mandatory multi-year insurance may be a possible solution to be considered.
Number of Pages in PDF File: 27
Keywords: Climate Change, Catastrophe Insurance, Mandatory Multi-year Insurance
Date posted: June 18, 2016 ; Last revised: July 2, 2016