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306 W.J.WouterBotzenet al.
mentswhichrewardpolicyholderswhoelevatetheirhomewithlowerpremiums,like
theNationalFloodInsuranceProgramintheUS(AertsandBotzen2011).Neverthe-
less,mostnaturaldisaster insurancesystemsdonotchargerisk-basedpremiumsthat
incentivise risk reduction.Hudsonetal. (2016)examinehowmuchadditionalflood
damagemitigation can be achievedwhenGermanflood insurance companies start
incentivisingriskreductionthroughchargingrisk-basedpremiums.Forthispurpose,
theydevelopedanintegratedmodeloffloodriskinallmainriverbasins inGermany,
the insurancesector, andhouseholdfloodpreparednessbehaviour.Theresults show
that the premium incentives for risk reduction limit the expected risk increase that
arise from climate changewith about 20%on average until the year 2040. These
findings suggest that financially rewarding policyholders for taking riskmitigation
measurescan improve theirpreparedness forflooding.
Inadditiontofinancial incentivesprovidedbyinsurance,avarietyofothermech-
anisms related to insurancesystemscanbeapplied to stimulatenaturaldisaster risk
reduction. Insurance systems canbe combinedwith building code and zoning reg-
ulations which limit vulnerability and exposure to natural hazards. For example,
communities in theU.S.whichparticipate in theNationalFloodInsuranceProgram
havetolimitnewconstructioninfloodwaysandnewbuildingshavetobeelevatedto
theexpectedwater levelof thefloodthatoccursonaverageonce in100years (Aerts
andBotzen2011). TheFrenchnatural disaster insurance system is connectedwith
so-calledRiskPreventionPlanswhich include recommendedor compulsorybuild-
ing code and zoning regulations tominimise flood damage (Poussin et al. 2013).
Such regulations andstandards areuseful for settingminimumrequirementswhich
arecost-effective forbuildings ina specifichazardzone.
12.6 Design ofAdaptation Pathwayswith Policy
Makers—CaseStudiesNewZealand andBangladesh
There are important challenges for deciding on climate-resilient investment and
developmentpathwaysunder conditionsofuncertaintyandchange, suchasanthro-
pogenicclimatechange.Inresponsetouncertainenvironmentalandsocio-economic
change,decisionmakersareurgedtodevelopadaptiveplans.Anumberofapproaches
that address uncertainty and changehavebeen takenup inpractice.These include,
real options analysis (Dobes 2008; Ranger et al. 2010), robust decision making
(Lempertetal.2003), iterativeriskmanagement(Haasnootetal.2011)andstrategic
planningapproaches(Roggema2009).Oneof theseapproaches,DynamicAdaptive
PathwaysPlanning (DAPP) (Haasnoot et al. 2013), has been used increasingly for
implementingclimate-resilientpathways forwatermanagement, ofwhich thesteps
are shown inFig.12.7.
Loss and Damage from Climate Change
Concepts, Methods and Policy Options
- Title
- Loss and Damage from Climate Change
- Subtitle
- Concepts, Methods and Policy Options
- Authors
- Reinhard Mechler
- Laurens M. Bouwer
- Thomas Schinko
- Swenja Surminski
- JoAnne Linnerooth-Bayer
- Publisher
- Springer Open
- Date
- 2019
- Language
- English
- License
- CC BY 4.0
- ISBN
- 978-3-319-72026-5
- Size
- 16.0 x 24.0 cm
- Pages
- 580
- Keywords
- Environment, Climate change, Environmental law, Environmental policy, Risk management
- Categories
- International
- Naturwissenschaften Umwelt und Klima