Experts have warned that disaster insurance should not be considered everything when it comes to resilience to disaster.

The experts who said that – includes the Intergovernmental Panel on Climate Change (IPCC) in its report on risk management of disasters and extreme events that advance adaptation to climate change – were expressing caution about insurance as a sort of cure-all for extreme weather.

Farmers in developing countries are losing their livestock and crops due to record setting extreme weather events. And because of that, they have turned to mechanisms like insurance as a means of transferring the risks involved. It is a lesson that they have learned and have adopted from richer countries.

However, insurers are wary of providing coverage for natural hazards – and this is even in developed countries – due to the systematic nature of those hazards.

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Posted in extreme weather