Managing natural disaster risks in a changing climate

Abstract

Natural disasters have increased in frequency and severity during the last few decades, causing considerable economic damage and loss of life. A combination of climate and socio-economic change is likely to augment disaster loss trends in the future, creating the need for more sophisticated disaster risk management. A resilient risk management strategy for uncertain low-probability, high-impact risks comprises a package of measures focused on disaster risk prevention, damage mitigation and arrangements for efficient risk sharing. Possible implications of climate change on future risks and risk management policies are outlined. It is argued that financial arrangements such as insurance can play an important role in an adaptation strategy aimed at limiting and ameliorating socio-economic impacts of natural disasters.

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