Climate catastrophe insurance for climate change: what do we know and what lies ahead?

Abstract

The complexities and seemingly uncontrollable nature of problems associated with climate change have intensified, giving rise to severe consequences, including rising sea levels, escalating temperatures, drought, deforestation, and heightened catastrophes such as typhoons. While long-term solutions such as energy transition and green finance are widely acknowledged, their implementation is time-consuming. Recognizing the urgency, there is a critical need to explore short-term, immediate measures to alleviate the adverse effects, particularly for ordinary and vulnerable groups. In this context, insurance emerges as a promising solution. This paper conducts a comprehensive review of the current state of research on climate catastrophe insurance for climate change, utilizing the Scopus database. Furthermore, the paper suggests directions for future research to address the pressing challenges posed by climate change.