Climate Risk Transfer vs Risk Reduction: Do Insurance-Based Incentives Promote Investment in Adaptation to Climate Change?

#insurance #climaterisk
“This paper discusses the relationship between the financial constraints faced by infrastructure assets due to #floodrisk exposure and their ability to finance adaptation to such #risks through internal resources. #risktransfer mechanisms such as #floodinsurance were shown to be a consistent channel leading to increases in #riskreduction through adaptation. “