Informal networks and resilience to climate change impacts: A collective approach to index insurance

Publication: Research - peer-reviewJournal article – Annual report year: 2011

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Informal networks and resilience to climate change impacts: A collective approach to index insurance. / Trærup, Sara Lærke Meltofte.

In: Global Environmental Change, Vol. 22, No. 1, 2012, p. 255-267.

Publication: Research - peer-reviewJournal article – Annual report year: 2011

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Trærup, Sara Lærke Meltofte / Informal networks and resilience to climate change impacts: A collective approach to index insurance.

In: Global Environmental Change, Vol. 22, No. 1, 2012, p. 255-267.

Publication: Research - peer-reviewJournal article – Annual report year: 2011

Bibtex

@article{e827b55eef4f4335941785bb759935d5,
title = "Informal networks and resilience to climate change impacts: A collective approach to index insurance",
keywords = "Resilience, Informal networks, Sustainable development and climate, Climate change, Index insurance, Bæredygtig udvikling og klima",
publisher = "Pergamon",
author = "Trærup, {Sara Lærke Meltofte}",
year = "2012",
doi = "10.1016/j.gloenvcha.2011.09.017",
volume = "22",
number = "1",
pages = "255--267",
journal = "Global Environmental Change",
issn = "0959-3780",

}

RIS

TY - JOUR

T1 - Informal networks and resilience to climate change impacts: A collective approach to index insurance

A1 - Trærup,Sara Lærke Meltofte

AU - Trærup,Sara Lærke Meltofte

PB - Pergamon

PY - 2012

Y1 - 2012

N2 - This article contributes to the understanding of how to proceed with the development of index-insurance in order to reach extended population coverage with the insurance. The approach is applied to an example from a region in Tanzania. One of the main coping strategies that resource-poor households rely on to manage risks related to fluctuations in income flows is risk-sharing in informal networks. An informal network is an ideal way of managing idiosyncratic shocks, but once such shocks become covariate and affect whole communities, as is the case with most climate change impacts, informal networks become insufficient since the majority of risk-sharers will be affected by the shock at the same time. This paper proposes a collective approach to index-insurance in which the members of an informal network will be insured as one insurance taker. The paper raises a conceptual argument that targeting households through existing informal networks will remove a number of prevailing barriers to the takeup of insurance and consequently the approach has the potential to increase households’ resilience to climate change impacts. The policy implications of the conclusions are significant since the number of covariate shocks is predicted to increase with climate change.

AB - This article contributes to the understanding of how to proceed with the development of index-insurance in order to reach extended population coverage with the insurance. The approach is applied to an example from a region in Tanzania. One of the main coping strategies that resource-poor households rely on to manage risks related to fluctuations in income flows is risk-sharing in informal networks. An informal network is an ideal way of managing idiosyncratic shocks, but once such shocks become covariate and affect whole communities, as is the case with most climate change impacts, informal networks become insufficient since the majority of risk-sharers will be affected by the shock at the same time. This paper proposes a collective approach to index-insurance in which the members of an informal network will be insured as one insurance taker. The paper raises a conceptual argument that targeting households through existing informal networks will remove a number of prevailing barriers to the takeup of insurance and consequently the approach has the potential to increase households’ resilience to climate change impacts. The policy implications of the conclusions are significant since the number of covariate shocks is predicted to increase with climate change.

KW - Resilience

KW - Informal networks

KW - Sustainable development and climate

KW - Climate change

KW - Index insurance

KW - Bæredygtig udvikling og klima

U2 - 10.1016/j.gloenvcha.2011.09.017

DO - 10.1016/j.gloenvcha.2011.09.017

JO - Global Environmental Change

JF - Global Environmental Change

SN - 0959-3780

IS - 1

VL - 22

SP - 255

EP - 267

ER -