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Impacts of a Changing Climate on Economic Damages and Insurance

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  • Christian L. E. Franzke

    (University of Hamburg)

Abstract

Weather and climate extremes cause huge economic damages and harm many lives each year (∼35000/year). There is evidence that some types of weather and climate extremes, like heat waves and flooding, have already increased or intensified over the last few decades, and climate projections reveal a further intensification for many types of weather and climate extremes in many regions though the uncertainties still remain large. While there is evidence for increases in economic losses it is uncertain whether this is due to an increase in the number and intensity of extreme events or can be attributed to socio-economic changes. However, there is agreement that the increasingly complex and internationally distributed supply chains of global companies make them more vulnerable to extreme weather events. It is also thought that global warming will adversely affect the global food supply chain and especially developing countries. Here I survey how weather and climate extremes impact our economies and how we can mitigate their impacts using financial and insurance products.

Suggested Citation

  • Christian L. E. Franzke, 2017. "Impacts of a Changing Climate on Economic Damages and Insurance," Economics of Disasters and Climate Change, Springer, vol. 1(1), pages 95-110, June.
  • Handle: RePEc:spr:ediscc:v:1:y:2017:i:1:d:10.1007_s41885-017-0004-3
    DOI: 10.1007/s41885-017-0004-3
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    Cited by:

    1. Christian L. E. Franzke & Herminia Torelló i Sentelles, 2020. "Risk of extreme high fatalities due to weather and climate hazards and its connection to large-scale climate variability," Climatic Change, Springer, vol. 162(2), pages 507-525, September.
    2. Ilan Noy & Shunsuke Managi & Stephane Hallegatte, 2018. "Economics of Disasters and Climate Change – The Journal’s First Year," Economics of Disasters and Climate Change, Springer, vol. 2(1), pages 1-3, April.
    3. Andrea Hauser & Carlos Rosa & Rui Esteves & Alexandra Moura & Carlos Oliveira, 2021. "Building a hurricane risk map for continental Portugal based on loss data from hurricane Leslie," Working Papers REM 2021/0209, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    4. Franzke, Christian L.E., 2021. "Towards the development of economic damage functions for weather and climate extremes," Ecological Economics, Elsevier, vol. 189(C).
    5. Christian L. E. Franzke & Marcin Czupryna, 2020. "Probabilistic assessment and projections of US weather and climate risks and economic damages," Climatic Change, Springer, vol. 158(3), pages 503-515, February.
    6. Rio Yonson, 2018. "Floods and Pestilence: Diseases in Philippine Urban Areas," Economics of Disasters and Climate Change, Springer, vol. 2(2), pages 107-135, July.

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