Seite - 321 - in Loss and Damage from Climate Change - Concepts, Methods and Policy Options

13 ExploringandManagingAdaptationFrontiers… 321 Fig.13.1 Acceptable, tolerableand intolerable risk. SourceDowetal. (2013a) enceofandexposuretopressures.Inthefaceofpotentiallygrowingweatherextremes andprofound shifts in natural systemsdriven by climate change, all countrieswill requirepathwaysthatreducevulnerabilityandleadtoamoreclimateresilientdevel- opment.Thesestrategiesshouldcomplementandfacilitate thedesignofapproaches to address longer-term incremental adverse effects of climate change. Increasing comprehensive riskmanagementcapacity fordealingwith today’sextremeclimate- related events can provide the basis formanaging both current climate variability and long-term shifts in climate patterns.Climate resilient sustainable development pathways run along a spectrum of those things decisionmakers can plan for and pre-empt,complementedbyasuiteofcontingencymeasurestohelpmanageclimate risks and impacts that have not been accounted for or addressed through planning and risk reduction.This chapter argues that insurancehas a role to play across this spectrum. 13.3 InsuranceRelatedInstrumentsasNavigationTools forAdaptationFrontiers Insurance is the transferof riskofa lossfromoneentity toanother inexchangefora paymentwhich is calledpremium.The insuredperson (policyholder) is trading the possibilityofalossforaguaranteedcosttoarisktakingentity(theinsurer).Insurance