Burton, D. and Best, P. and Fairweather, H. and Mushtaq, S. (2012) Insurance innovations and incentives for adaptation using weather reanalysis tools for contract pricing. In: Climate Adaptation in Action 2012: Sharing Knowledge to Adapt (NCCARF 2012), 26-28 Jun 2012, Melbourne, Australia.
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Abstract
Reanalysis techniques show that extreme weather events such as heat-waves and significant, severe hail have increased over most of Australia in the last fifty years of the 1871-2008 period. Indemnity insurance of such weather hazards is becoming increasingly expensive and difficult to price as they become a more systemic feature of the Australian climate. Innovations such as index-based insurance based on site moisture and climate indicators such as the Southern Oscillation may offer a better treatment of such multiple perils by allowing a more widespread offsetting of risks for vulnerable communities. Such benefits may be increased if some aggregation of risks is encouraged by insuring co-operatives, longer-term contracts are used to provide some stability to the market and adaptation incentives are offered to the participating groups as a way to lower the premium costs. We illustrate these arguments by considering the insurance of weather risks for a typical farming community in the Queensland to New South Wales near-coastal strip. There is considerable potential for useful interactions with other sectors such as the energy and water industries.
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Item Type: | Conference or Workshop Item (Commonwealth Reporting Category E) (Speech) |
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Refereed: | Yes |
Item Status: | Live Archive |
Additional Information: | © National Climate Change Adaptation Research Facility 2012 NCCARF Publication 14/12. Abstract of oral presentation only. |
Faculty/School / Institute/Centre: | Historic - Faculty of Sciences - No Department (Up to 30 Jun 2013) |
Faculty/School / Institute/Centre: | Historic - Faculty of Sciences - No Department (Up to 30 Jun 2013) |
Date Deposited: | 14 Mar 2013 21:10 |
Last Modified: | 28 Feb 2018 06:14 |
Uncontrolled Keywords: | climate change; weather; insurance; Australia; flood; drought; hail |
Fields of Research (2008): | 04 Earth Sciences > 0401 Atmospheric Sciences > 040104 Climate Change Processes 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management 14 Economics > 1402 Applied Economics > 140207 Financial Economics |
Socio-Economic Objectives (2008): | D Environment > 96 Environment > 9603 Climate and Climate Change > 960301 Climate Change Adaptation Measures |
URI: | http://eprints.usq.edu.au/id/eprint/22133 |
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