Seite - 291 - in Loss and Damage from Climate Change - Concepts, Methods and Policy Options

12 IntegratedDisasterRiskManagementandAdaptation 291 riskreductionbytheirpolicyholdersthroughrisk-basedpremiumswhichrewardrisk reduction activitieswith premiumdiscounts (Bozen2013).A further discussionof such incentives related to insurance isprovided in thechapterbyLinnerooth-Bayer et al. (2018). Risk reduction and adaptationwill have a pertinent influence on the vulnerabil- ity of countries to anthropogenic climate change. Various actions exist at present, including: • Nationalandlocalpublicactorsaddressingnaturalhazardrisk,includingplanning for increased future risk because of climate change, supported by public sector budgets; • Private actors reducing their risk andplanning for climate adaptation, often sup- portedby (national)public actors; • International support to reducenaturaldisaster risk, suchas throughcoordinating activitiesundertheUNISDRandthroughimplementdisasterriskreductionactions by donors and International Financial Institutions (IFIs), such as development banks; • International support to implement climate adaptation actions, including support fromfundsunderUNFCCCandfromotherdonors.1 Thisimpliesthatpast impactsfromextremeweatherandclimateeventscannotbe takenas thenorm,because future impactswillbedifferentdependingonadaptation efforts that are expected to reduce vulnerabilities. This is already clear from the historical record, as can be seen in the chapter by Bouwer (2018). Also, from an economic perspective adaptation actions and risk reduction need to be considered, andeconomicallyefficientadaptationsolutionsshouldbeimplemented,beforeL&D can be accepted as outcome. The underlying reason is that it is cheaper tomake the investment to reduce the impacts than to absorb the impacts in any otherway, includingmechanismssetup todealwith residualdamages, likeL&D. In this chapter, different approaches for risk management and their effects on limiting risk from climate change are discussed. An emphasis is placed on case studyinsightandactionsthatavoiddamages.Successively,wediscussthefollowing levelsof actions: • Assessmentofweather-relateddisasterrisk,asabasisfordecisionmakingonrisk management; • Cost-benefit analysis of adaptation strategies inwhich risk assessmentmethods areused toevaluate thebenefitsof adaptation; • Household-level actions to reduce risk; • Relations between ex post compensation through insurance and incentives for household risk reduction; • Adaptationplanningapproaches includingadaptationpathways. 1Forexample seehttps://www.adaptation-fund.org/projects-programmes/.