ABSTRACT
Insurance has been part of the economy for a long time, always having taken long-term trends into consideration. This chapter explores insurance for disaster risk reduction (DRR) including climate change adaptation (CCA). Although insurance follows some general rules, its situation regarding DRR including CCA varies according to affluence levels. The increasing costs of disasters due to exposure alongside international mechanisms seeking a suite of DRR tools are opening opportunities for insurers to explore different approaches, especially in trying to understand how to reconcile DRR including CCA with insurance's traditional rules and aims. Besides continuing to deal with frequent hazards, insurance and reinsurance sectors have led many prospective studies regarding preparing for the occurrence of extreme hazards. Insurers, governments, and local stakeholders are developing partnerships and tools for DRR including CCA to limit the exposure of portfolios, and hopefully to help people.
