Insurance and the "Irrationalization" of Disaster Policy: A Political Crisis Theory for an Age of Climate Risk.

In the last several years, disaster insurance programs around the world have experienced disruptions that many observers interpret to be a primary symptom of "climate crisis" (Bittle 2024). Governments have responded to these disruptions through disjointed and at times contradictory measures: they treat disasters, alternately, as "Acts of God" that should be a collective responsibility, or as the result of decisions that can be attributed to individual agency. This article argues that such shifts between mutualism and individualization in disaster insurance are symptoms of an "irrationalization" of disaster policy. The concept of irrationalization, derived from the Marxist state theory of Claus Offe (1973), describes the process of goal identification and policy formulation of contemporary states as they navigate simultaneously valid but ultimately contradictory principles of political morality and governmental rationality. Through case studies of two disaster insurance programs in the US-the National Flood Insurance Program and property insurance in California, which covers wildfires-the article shows that irrationalization processes are becoming more marked as disasters grow ever larger and costlier, fueled by climate change and other anthropogenic causes. It also suggests that the concept of irrationalization offers insight into the emerging forms of "climate crisis" that are unfolding in disaster policy and other domains. The concept of climate crisis is frequently invoked to designate the ruptural change that will follow from global warming, and to both summon and justify radical action to address problems that are attributed to a particular causal or moral agent. But in the context of the irrationalization of disaster policy, technical and moral attributions are uncertain and disputed. Disasters generate political conflict and crisis-driven reorganization rather than decisive courses of action.