20.11.2014 Views

Climate change futures: health, ecological and economic dimensions

Climate change futures: health, ecological and economic dimensions

Climate change futures: health, ecological and economic dimensions

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

communities, salinizing ground water <strong>and</strong> under-isl<strong>and</strong><br />

freshwater lenses (the pocket of fresh water underlying<br />

inhabitable isl<strong>and</strong>s), which affects agriculture, human<br />

<strong>health</strong> <strong>and</strong> habitability.<br />

The compounding effects of such massive <strong>and</strong> concurrent<br />

losses become visible in many lines of the insurance<br />

business. As a result, insurers withdraw from segments<br />

in a variety of markets, particularly coastlines<br />

<strong>and</strong> shores vulnerable to sea level rise <strong>and</strong> loss of barrier<br />

habitat. Contraction by insurers has a dampening<br />

effect on <strong>economic</strong> activity.<br />

In the largely uninsured developing world, climate<br />

<strong>change</strong> impacts displace large populations, putting<br />

great stress on the nations receiving the exodus. Social<br />

instability also triggers “political risk” insurance systems<br />

that insure against expropriation or nationalization of<br />

assets or losses resulting from politically motivated violence,<br />

such as civil or cross-boundary conflict.<br />

30 | THE CLIMATE CONTEXT TODAY<br />

Meanwhile, insurance companies have difficulty raising<br />

deductibles commensurate with the losses <strong>and</strong><br />

adopting adequate loss limits, effectively deeming certain<br />

events uninsurable <strong>and</strong> thus shifting a share of the<br />

losses back to individuals or governments (Mills et al.<br />

2005). In cases where commercial insurance is no<br />

longer available, already beleaguered public insurance<br />

systems attempt to fill the void, but many nations<br />

find it increasingly difficult to absorb the costs.<br />

Part II of this report delves into case studies of <strong>health</strong><br />

conditions <strong>and</strong> extreme weather events underpinning<br />

these two potential <strong>futures</strong>.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!