World Economic Forum

Rich countries could be asked to insure island states against climate disasters

A global insurance scheme could protect 100 vulnerable nations against the spiralling costs of storms, droughts and rising seas. Small island developing states face losses of 50-300% of GDP to hurricanes and other climate events. Until now, small island states were seen as untouchable in insurance terms but new research from Cambridge University and the insurer Howden shows coverage remains possible by modelling the likely risks they face and using premiums funded by ‘donor’ countries.