Geoscience Reference
In-Depth Information
be necessary to reduce risk and facilitate collaboration between government,
insurance and civic organisations.
Scientifi c modelling and forecasting offers a tool for understanding future risks.
A model-based approach to understanding risks would facilitate the construction of
early warning systems for those extreme events that are predictable with lead times
that provide suffi cient time for action. Open access initiatives will improve transpar-
ency, increase the diversity of models and help to cope with uncertainties in the
modelling process. Social media will facilitate the collection and sharing of data
about these risks. These activities provide an opportunity for the insurance industry
to collaborate in public-private partnerships that will forge the future generation of
risk management strategies.
In order to increase the role of insurance in managing the risk of natural disas-
ters, the following actions are recommended:
• Increase national government funding and offi cial development assistance for IT
infrastructure, meteorological stations and remote sensing for collecting envi-
ronmental and loss data.
• Create public-private partnerships to develop open-access models and pilot
innovative alternative risk transfer mechanisms.
• Undertake independent evaluations of alternative insurance products such as
index-based insurance.
• Provide education and training for insurance products.
• Improve the legal and regulatory environment to facilitate access to global rein-
surance markets.
In our globalised and highly interconnected society, there will be a greater need
to construct equitable approaches for transferring and sharing risks from environ-
mental change on both local and global scales. The insurance industry is well placed
to advise, innovate and pilot new solutions for managing these twenty-fi rst-century
risks.
References
Anastasiades G, McSharry PE (2013) Extreme value analysis for estimating 50-year return wind
speeds from reanalysis data. Wind Energy. doi:
10.1002/we.1630
Cummins JD, Mahul O (2009) Catastrophe risk fi nancing in developing countries. World Bank,
Washington, DC
Dercon S (2004) Growth and shocks: evidence from rural Ethiopia. J Develop Econ 74(2):
309-329
EIA (2011) International energy outlook. US Energy Information Administration, Washington, DC
Elsner JB, Burch RK, Jagger TH (2009) Catastrophe fi nance: an emerging discipline. EOS Trans
Am Geophys Union 90(33):281-288
Foresight (2011) The future of food and farming: challenges and choices for global sustainability.
Government Offi ce for Science, London
Gurenko EN (ed) (2004) Catastrophe risk and reinsurance: a country risk management perspective.
Risk Books, London
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