In this new Journal of City Climate Policy and Economy article published for city planners and policy makers, Professor Paula Jarzabkowski and her coauthors explain how governments can address the insurance crisis in order to maintain strong urban economies. As there is no simple solution for the complex problem of uninsurability in high-risk urban areas, we propose broadening the insurance ecosystem for countries in which insurance is predominantly private sector to incorporate both government-legislated risk pooling and individual parametric insurance for businesses. These two options should be used in tandem with a long-term comprehensive risk reduction programme.
Parametrics are useful but no ‘silver bullet’ for rising homeowner premiums
