The institution of insurance as it is known today has been largely neglected by sociologists, even though it is the central institution, alongside government, responsible for risk management (Ericson et al 2003: 44). A central focus of risk management is the protection of society from damage caused by natural hazards. This thesis aims to frame insurance and other institutions involved with risk management into a particular viewpoint of social problems.
Natural hazards constitute the largest shore of the market for insurance while at the same time pose the largest challenge for the institution. One may question why this is so. Well into the 21st century anthropogenic climate change or global warming is no longer merely a theory, it has become reality. International reinsurers, scientists and politicians agree that anthropogenic CO2 and other gases are increasing the temperature on earth. Consequentially natural hazards are increasing in frequency and impact (Munich Re 2009). This poses problems for societies dealing with impacts from natural hazards. Much research has been done on individual behavior in deciding whether or not to insure against natural hazards (Kunreuther 2004; Kerjan 2008a; Grace 2006).
This line of research views individual as myopic in assessing risk, thereby underestimating risk and the relevance of insurance. The emphasis of this research is mostly on the irrationality of individuals as regards the benefits of insurance. This perspective fails to take into account the influence of societal institutions on individual decisions; for example, whether or not to insure against disasters. Theoretical exercises in this direction are common, whereas attempts to consider the environment of a specific risk management system are rare. Michael Huber’s observation (2004a) represents an exception as it describes the institutional arrangement for the management of floods in England while emphasizing the influence it has on insurability.
The assumption that institutions exercise an effect on the insurability of natural hazards remains central. Generally when regarding natural hazards one can differentiate between those affected and those unaffected by anthropogenic climate change. Natural hazards which are not amplified by global warming are earthquakes, volcano eruptions and tsunamis (Munich Re 2009). [...]
Inhaltsverzeichnis (Table of Contents)
- Introduction
- I. Insurability of natural hazards
- II. Current institutional arrangements (USA, UK, Germany)
- The United States
- Floods in the United States
- Main institutions involved with US floods
- Interaction between institutions
- Windstorms in the United States
- Private insurance
- The Federal Emergency Management Agency
- Governmental insurance regulation
- Interaction between Institutions
- Hurricane Katrina
- Droughts in the United States
- The perception of drought in the US
- Main institutions involved with drought
- The United Kingdom
- Floods in the United Kingdom
- Institutions managing floods in the UK
- Interaction between Institutions
- The 2007 Floods
- Storms in the UK
- Institutions managing storms in the UK
- Interaction between institutions
- Impact of windstorms
- Hurricane Kyrill
- Drought in the UK
- Institutions managing drought in the UK
- Interaction between institutions
- Impact of drought
- Germany
- Floods in Germany
- Institutions managing flood risk
- Interaction between institutions
- Impact of floods
- The Century-Flood "Jahrhundertflut"
- Mandatory insurance in Germany
- Flood effects in detail
- Windstorms in Germany
- Institutions managing windstorms
- Interaction between institutions
- Impact of windstorms
- Winterstorm Kyrill
- Drought in Germany
- Private insurance
- Federal Government
- Possible impacts of drought
- The 2003 summer drought
- III. Comparative approach
- The United States
- United Kingdom
- Germany
- Functional difference between institutional arrangements
- IV. Global warming a perpetuation
- The United States
- United Kingdom
- Germany
- Insuring natural hazards in a global warming environment
- Insurability of natural hazards in a global warming environment
- Comparative analysis of institutional arrangements across three countries
- Assessment of institutional capacity to manage flood, windstorm, and drought risks
- Impact of climate change on insurance structures and policies
- The interplay between private and public actors in managing natural hazards
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work investigates the insurability of natural hazards in the context of global warming, focusing on the institutional arrangements for managing flood, windstorm, and drought risks in the United States, the United Kingdom, and Germany. The analysis explores how existing structures address these hazards and evaluates their capacity to respond to the increasing frequency and intensity of extreme weather events linked to climate change.Zusammenfassung der Kapitel (Chapter Summaries)
The initial chapters examine the fundamental concept of insurability in relation to natural hazards, exploring the theoretical underpinnings of managing these risks. The subsequent section delves into the institutional frameworks and policies implemented in the United States, the United Kingdom, and Germany, providing a detailed overview of the actors involved in managing flood, windstorm, and drought risks in each country. These chapters highlight the specific challenges and successes of existing institutional arrangements in these nations. The comparative analysis then draws upon the individual country case studies, identifying both similarities and differences in their approaches. It examines the strengths and weaknesses of each national system in addressing the growing threat of climate change. This section provides a valuable framework for understanding the effectiveness of existing institutional responses to climate-related hazards. The final chapters delve into the implications of global warming for the insurability of natural hazards, exploring how climate change necessitates adaptations to existing frameworks and policies. This analysis focuses on the potential consequences of climate change for insurance structures and policies, offering insights into the challenges and opportunities posed by a warming world.Schlüsselwörter (Keywords)
The primary focus of this work is on the insurability of natural hazards, specifically floods, windstorms, and droughts, in the context of global warming. The analysis examines the institutional arrangements and policies in the United States, the United Kingdom, and Germany, exploring the interactions between private and public actors in managing these risks. Key terms include climate change, insurance, risk management, institutional frameworks, comparative analysis, and adaptation strategies.- Quote paper
- Peter Nicholson (Author), 2010, Is global warming insurable? A comparative analysis, Munich, GRIN Verlag, https://www.grin.com/document/283832
