Climate Risk Insurance for the Poor and Vulnerable. Prospects and Difficulties of Using It to Address Damage and Loss

Essay in the subject Environmental Sciences - Climate and environmental protection, , language: English, abstract: This paper examines the role of Climate Risk Insurance (CRI) as a strategy to mitigate the financial impacts of extreme weather events on the world's most vulnerable regions, particularly low-income countries. While CRI offers potential benefits by providing timely financial resources and promoting resilience, it also faces challenges such as affordability, accessibility, and moral hazard. The study explores different insurance models, including micro and macro-level approaches, and evaluates their effectiveness in addressing climate-related losses. It also discusses the necessity of international cooperation, such as solidarity funds and climate damage tax systems, to support the implementation of CRI. Ultimately, the paper argues for a comprehensive, justice-oriented approach to CRI, emphasizing the need for accessible insurance solutions and direct aid mechanisms to protect the most vulnerable populations from the escalating impacts of climate change.

Yasser Arafat Tackie is an academic and environmental activist with a strong focus on natural resources management, community development, and sustainable practices. He holds an M.Sc. in Global Change Management from the University of Applied Sciences Eberswalde (HNEE) in Germany, a BA in Environment and Resource Management and a Diploma in Integrated Community Development from the University for Development Studies (UDS) in Ghana. Tackie is actively involved in various environmental and community-based initiatives, advocating for biodiversity conservation, sustainable land management, and inclusive insurance to protect vulnerable populations from financial risks. He has published works on the effects of bushfires on food crops in Ghana, the impact of mining on the environment in Ghana's Upper West Region, and the potential of certain tree species for use in agroforestry. His work emphasizes the importance of grassroots involvement and public-private partnerships in addressing environmental challenges and promoting sustainability.