Skip to main content
SpringerLink
Log in
Book cover

Climatic Change: Implications for the Hydrological Cycle and for Water Management pp 429–444Cite as

Changing climate and increasing costs — Implications for liability and insurance

  • Chapter

Part of the book series: Advances in Global Change Research ((AGLO,volume 10))

Abstract

This paper discusses the probability of changing frequencies and intensities of extreme weather events and their fmancial aspects. The main concems are with precipitation related events such as rainfall, flooding and drought.Particular attention is given to damage costs and the role of insurance. The recent increase of economie and insured losses may well be an early indication of what climate change has in store. Attribution analyses of damage costs can show what part of the costs is related to increased exposure of people and capital and what part is related to climate change. In Europe, a large part of flood related damage is taken up by governments or stateowned companies and individuals. Under a changing climate regime, the organisation, the geographie scale of covering risk, and the roles of private and public insurance will have to be reconsidered. We argue that new ways of covering the cost of risk mitigation and insurance should be explored. Elaboration of the polluter pays principle and liability approaches in an international context would help to identify ways of dealing with the risk and damage cost related to climate change.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   169.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Arriens, W.J.T., and C. Benson, 1999: Post disaster rehabilitation: the experience of the Asian Development Bank. Paper for IDNDR-ESCAP regional meeting for Asia: risk reduction and society in the 21st century, Bangkok, 23–26 February 1999. Asian Development Bank, Manila, Phillipines, 17 pp.

    Google Scholar 

  • Bardossy, A., and H.J. Caspari, 1990: Detection of climate change in Europe by analyzing European atmospheric circulation patterns from 1881 to 1989. Theoretical and Applied Climatology, 42(3), 155–167.

    Article  Google Scholar 

  • Benson, C, 1997: The economie impacts of natural disasters in Fiji. Working Paper 97, Overseas Development Institute, London, UK, 108 pp.

    Google Scholar 

  • Berz, G.A., 1999: Catastrophes and climate change: concerns and possible countermeasures for the insurance industry. Mitigation and Adaptation Strategies for Global Change, 4(3/4), 283–293.

    Article  Google Scholar 

  • Bruce, J.P., I. Burton, and M. Egener, 1999: Disaster Mitigation and Preparedness in a Changing Climate. Research Paper No. 2, Institute for Catastrophic Loss Reduction (ICLR), Ottawa, Canada, 36 pp.

    Google Scholar 

  • CCR, 1999: Natural Disasters in France. Caisse Centrale de Reassurance, Paris, France, 22 pp. (in French and English)

    Google Scholar 

  • Caspari, H.J., and A. Bardossy, 1995: Markieren die Winterhochwasser 1990 und 1993 das Ende der Stationaritàt in der Hochwasserhydrology infolge von Klimaanderungen? Bodenund Wasser, 47(3), 18–24. (Do the winterfloods of 1990 and 1993 mark the end of stationary high–water hydrology as a consequence of climate change?) (in German)

    Google Scholar 

  • Changnon, S.A., D. Changnon,Fosse E, R., D.C. Hoganson, R.J. Roth Sr., and J.M. Totsch, 1997: Effects of recent weather extremes on the insurance industry: major implications for the atmospheric sciences. Bulletin of the American Meteorological Society, 78(3), 425–431.

    Article  Google Scholar 

  • Changnon, S.A., R.A. Pielke, Jr., D. Changnon, R.T. Sylves, and R. Pulwarty, 2000: Human factors explain the increased losses from weather and climate extremes. Bulletin of the American Meteorological Society, 81(3), 437–442.

    Article  Google Scholar 

  • Dessens, J., 1995: Severe convective weather in the context of a global nighttime warming. Geophysical Research Letters, 22(10), 1241–1244.

    Article  Google Scholar 

  • Easterling, D.R., G.A. Meehl, C. Parmesan, S.A. Changnon, T.R. Karl, and L.O. Mearns, 2000: Climate extremes; observations, modeling, and impacts. Science, 289, 2068–2074.

    Article  Google Scholar 

  • HKV, 1999: Onderzoek van waterschade ten gevolge van neerslag. HKV — lijn in water, Lelystad, The Netherlands, 66 pp. (Research of damage caused by precipitation) (in Dutch)

    Google Scholar 

  • Hooke, W.H., 2000: U.S. participation in International Decade for Natural Disaster Reduction. Natural Hazards Review, 1(1), 2–9.

    Article  Google Scholar 

  • IPCC, 2001: Climate Change 2001 — The Scientific Basis. Contribution ofWorking Group 1 to the Third Assessment Report of The Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge, UK. (in press)

    Google Scholar 

  • Karl, T.R., and R.W. Knight, 1998: Secular trends of precipitation amount, frequency, and intensity in the United States. Bulletin of the American Meteorological Society, 79(2), 231–241.

    Article  Google Scholar 

  • Kreimer, A., and M. Arnold, 2000: World Bank’s role in reducing impacts of disasters. Natural Hazards Review, 1(1), 37–42.

    Article  Google Scholar 

  • Kunkel, K.E., R.A. Pielke Jr., and S.A. Changnon, 1999: Temporal fluctuations in weather and climate extremes that cause economie and human health impacts: a review. Bulletin of the American Meteorological Society, 80(6), 1077–1098.

    Article  Google Scholar 

  • Kunreuther, H., 1998: Insurability conditions and the supply of coverage. In: Paying the Price, The Status and Role of Insurance in the United States. Eds. Kunreuther, H., and R. Roth. Joseph Henry Press, Washington D.C., USA, p. 17–50.

    Google Scholar 

  • Lecomte, E., A.W. Pang, and J.W. Russell, 1998: Ice Storm ’98. Institute for Catastrophic Loss Reduction, Toronto, Canada, 39 pp.

    Google Scholar 

  • Linnerooth-Bayer, J., and A. Amendola, 2000: Global change, natural disasters and losssharing: issues of efficiency and equity. The Geneva Papers on Risk and Insurance Issues and Practice, 25(2), 203–219.

    Article  Google Scholar 

  • Lins, H.F., and J.R. Slack, 1999: Streamflow trends in the United States. Geophysical Research Letters, 26(2), 227–230.

    Article  Google Scholar 

  • Louberge, H., and H. Schlesinger, 1999: Optimal catastrophe insurance with uncorrelated catastrophes. Working Paper 99.03, Department of Economies, University of Geneva, Geneva, Switzerland, 16 pp.

    Google Scholar 

  • Meehl, G.A., T. Karl, D.R. Easterling, S. Changnon, R. Pielke Jr., D. Changnon, J. Evans, P.Ya. Groisman, T.R. Knutson, K.E. Kunkel, L.O. Mearns, C. Parmesan, R. Pulwarty, T. Root, R.T Syves, P. Whetton, and F. Zwiers, 2000: An introduction to trends in extreme weather and climate events: observations, socioeconomic impacts, terrestrial ecological

    Google Scholar 

  • impacts, and model projections. Bulletin of the American Meteorological Society, 81(3), 413–416.

    Google Scholar 

  • Munich Re, 1999: Topics 2000, Natural Catastrophes — The Current Position. Munich Reinsurance Company, Munich, Germany, 126 pp.

    Google Scholar 

  • Munich Re, 2000: Topics, Annual Review of Natural Catastrophes 1999. Munich Reinsurance Company, Munich, Germany, 46 pp.

    Google Scholar 

  • Pielke, Jr., R.A., and C. Landsea, 1998: Normalized hurricane damages in the United States 1925–95. Weather and Forecasting, 13(3), 621–631.

    Article  Google Scholar 

  • Pielke, Jr., R.A., and M. Downton, 1999: U.S. trends in streamflow and precipitation: using societal impacts data to address an apparent paradox. Bulletin of the American Meteorological Society, 80(7), 1435–1436.

    Google Scholar 

  • Pielke, Jr., R.A., and M.W. Downton, 2000: Precipitation and damaging floods: trends in the United States, 1932–97. Journal of Climate, 13(20), 3625–3637.

    Article  Google Scholar 

  • Radevsky, R., 1999: Subsidence, a Global Perspective. General Insurance Research Report No. 1, Association of British Insurers, London, UK, 44 pp.

    Google Scholar 

  • Schonwiese, CD., 1999: Trends mittlerer und extremer Niederslage als Ursache von AbfluBtrends? In: Extreme Naturereignisse und Wasserwirtschaft — Niederslag und Abflufi Internationales Symposium. Bayerisches Landesamt fur Wasserwirtschaft, Munich Germany, p. 105–114. (Trends of middle and extreme precipitation, a cause of streamflow trends?) (in German)

    Google Scholar 

  • Skogh, G., 1998: Development risks, strict liability, and the insurability of industrial hazards. The Geneva Papers on Risk and Insurance—Issues and Practice, 23(87), 247–264.

    Google Scholar 

  • Swiss Re, 1999a: Climate Research Does Not Remove the Uncertainty—Coping With the Risks of Climate Change. Swiss Reinsurance Company, Zurich, Switzerland, 8 pp.

    Google Scholar 

  • Swiss Re, 1999b: World Insurance in 1998. Sigma Report 7, Swiss Reinsurance Company, Zurich, Switzerland, 29 pp.

    Google Scholar 

  • Toi, R.S.J., 1998: Climate change and insurance: a critical appraisal. Energy Policy, 26(3), 257–262.

    Article  Google Scholar 

  • Tucker, M., 1997: Climate change and the insurance industry: the cost of increased risk and the impetus for action. Ecological Economies, 22(2), 85–96.

    Article  Google Scholar 

  • UNFCCC, 1997: Kyoto ProtocolUnited Nations Framework Convention on Climate Change (UNFCCC), Bonn, Germany, 23 pp.

    Google Scholar 

  • United Nations, 1992: United Nations Framework Convention on Climate Change. United Nations, New York, USA, 32 pp.

    Google Scholar 

  • Van Schoubroeck, C, 1997: Legislation and practice concerning natural disasters and insurance in a number of European countries. The Geneva Papers on Risk and Insurance Issues and Practice, 22(83), 238–267.

    Google Scholar 

  • Vellinga, P., E. Mills, G. Berz, L. Bouwer, S. Huq, L.A. Kozak, J. Palutikof, B. Schanzenbacher, G. Soler, C. Benson, J. Bruce, G. Frerks, P. Huyck, P. Kovacs, X. Olsthoorn, A. Peara, S. Shida, and A. Dlugolecki, 2001: Insurance and other financial services. In: Climate Change 2001—Impacts, Adaptation and Vulnerability. Contribution of Working Group 2 to the Third Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge, UK. (in press)

    Google Scholar 

  • Werksman, J., 1998: Compliance issues under the Kyoto protocol’s clean development mechanism. In: The clean development mechanism. Draft working papers WRI/FIELD/CSDA, October. Foundation for International and Environmental Law and Development (FIELD), London, UK, p. 32–39.

    Google Scholar 

  • Werner, P.C., F.W. Gerstengarbe, K. Fràdrich, and H. Oesterle, 2000: Recent climate change in the North Atlantic/European sector. International Journal of Climatology, 20(5), 463–471.

    Article  Google Scholar 

  • Wilford, M., 1993: Insuring against sea level rise. In: The Global Greenhouse Regime — Who Pays?Eds. Hayes, P., and K. Smith. Earthscan, London, UK, p. 169–187.

    Google Scholar 

  • Yamin, F., 1998: Adaptation and the clean development mechanism. In: The clean development mechanism. Draft working papers WRI/FIELD/CSDA, October. Foundation for International and Environmental Law and Development (FIELD), London, UK, p. 41– 52.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Institute for Environmental Studies, Vrije Universiteit, Amsterdam, The Netherlands

    Laurens M. Bouwer & Pier Vellinga

Authors
  1. Laurens M. Bouwer
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Pier Vellinga
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Department of Geosciences, University of Fribourg, Switzerland

    Martin Beniston

Rights and permissions

Reprints and permissions

Copyright information

© 2002 Springer Science+Business Media Dordrecht

About this chapter

Cite this chapter

Bouwer, L.M., Vellinga, P. (2002). Changing climate and increasing costs — Implications for liability and insurance. In: Beniston, M. (eds) Climatic Change: Implications for the Hydrological Cycle and for Water Management. Advances in Global Change Research, vol 10. Springer, Dordrecht. https://doi.org/10.1007/0-306-47983-4_21

Download citation

  • DOI: https://doi.org/10.1007/0-306-47983-4_21

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-90-481-5944-4

  • Online ISBN: 978-0-306-47983-0

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics

Search

Navigation