Evolution of research on climate risk insurance:A bibliometric analysis from 1975 to 2022

Insurance against climate risk is essential for mitigating the adverse effects of climate change.However,theoretical consensus regarding climate risk insurance remains elusive,and the implementation of climate insurance policies varies markedly between countries owing to various challenges.This study conducted bibliometric analysis of 1082 relevant publications(1975–2022)to determine the theoretical basis,evolution of research hotspots,and methodologies associated with climate risk insurance.Climate insurance publications are growing at an average annual rate of 8.9%,with more than 2333 authors from 1103 organizations in 78 countries publishing on the subject.On the basis of milestones of global climate change assessment,i.e.,the publication of the Fourth and Fifth Assessment Reports of the Intergovernmental Panel on Climate Change,climate insurance research can be divided into three major phases.In the start-up phase(1975–2007),research schemes examined the feasibilities and potentials of the National Flood Insurance Program in the United States,and the socioeconomic implications of transferring climate risk through reinsurance.The methodologies used in these studies were relatively simple owing to lack of comprehensive data.Research on flood insurance increased rapidly during the development phase(2008–2014),with increasing emphasis on the possibility of developing a flood insurance market in the Netherlands.Studies utilized catastrophe modeling and probabilistic approaches to estimate natural disaster losses and financial impacts.The boom phase(2015–2022)involved more research on the affordability of climate risk insurance given income inequality.The topic of climate insurance and the scope of its impact have developed global and interdisciplinary characteristics in terms of journal,sector,and disciplinary base.In the future,a trend might develop whereby big data will be combined with artificial intelligence and machine learning to design and implement index insurance.

Design of a Socially Inclusive Climate Risk Transfer Mechanism:A Case Study in La Guajira,Colombia

The primary aim of this study was to develop a model of a socially inclusive climate risk insurance(CRI) mechanism based on the differential risk transfer approach. This study focused on the department of La Guajira, Colombia, as a case study.La Guajira is the department in Colombia that, due to its critical disaster risk conditions, presents the adequate configuration for implementing a climate risk transfer mechanism. The article starts by analyzing risk conditions by using secondary data. Based on fieldwork, this research explored the perspectives of the most vulnerable sectors in La Guajira Department on the socioeconomic impacts and needs they experience regarding climate-related hazards, their adaptive measures for risk reduction, and their willingness to adopt CRI. This represents the fundamental input for the formulation of the CRI model. Consequently, this research proposed an operational structure as input for future implementations of the model. The results indicate that national and local disaster risk management public policies align with the sectors' needs and priorities. Strengthening sectoral associations can enhance representation in CRI projects. In-kind indemnization is preferred for women entrepreneurs and the indigenous community. The CRI model includes a risk pool through the family compensation fund of La Guajira as a sectoral agglomerator, with contingent credit and traditional/parametric insurance. The methodology developed in this study can be applied in different contexts worldwide as a guidance for informing national and international climate risk finance initiatives.