The objective of the project is to provide policy makers in international agencies, national governments, non-governmental organisations and the insurance industry with a state-of-the-art review of the potential impacts of the risk of extreme weather events due to climate change. It is based on weather scenarios and an evaluation of the practical policy responses.
The methodology embraces four elements:
i) Weather scenarios. The current and likely future incidence, magnitude, duration and severity of extreme events is summarized for weather anomalies such as temperature and precipitation extremes, wind storms, cyclones and floods. are designed.
ii) Sectoral impact analysis. First-order impact analyses of the effects of extreme events are carried out for six sector-impact combinations : agriculture and crop failure, land subsidence and drought, buildings, windstorms, human health and heat stress. The analysis consists of: profiles of present extreme events and exposed demographic and economic units; assessment of hazard-loss relationships between those at risk and the extreme events; identification of the units at risk; development of scenarios of the altered frequency and intensity of the extreme events due to climate change; assessment of the socio-economic losses due to the extreme events; identification of possible thresholds of damage of critical significance to the insurance industry.
iii) Socio-economic evaluation. The focus is on the evaluation (in a macro-economic perspective) of the insurance industry, including re-insurance markets, and their sensitivity to increased risks and potential strategies to manage changes in future exposure and risk.
iv) Policy responses. The project reviews present and past mechanisms for the adaptation to extreme events and natural hazards. It provides then recommendations for an integrated policy to deal with the changed incidence and intensity of extreme weather events due to climate change.
Funding SchemeCSC - Cost-sharing contracts