Starominski-Uehara, M., & Keskitalo, E. C. H. (2016). How does natural hazard insurance literature discuss the risks of climate change?. Journal of Insurance Regulation, 35(6). 

summary by Perplexity:

The article discusses how the natural hazard insurance literature examines the risks posed by climate change. Here are the key points:

1. Climate change is increasing the frequency and severity of extreme weather events, leading to higher insured losses for the insurance industry. 

2. Insurers are adapting business practices to manage growing climate risks, such as improving catastrophe modeling, risk analysis, and data collection. However, long-term adaptation strategies are limited. 

3. Insurance can incentivize risk mitigation by pricing premiums based on risk exposure, discouraging development in hazard-prone areas. But it also creates moral hazard by reducing motivation for individuals to take protective measures. 

4. Public-private partnerships (PPPs) are emerging as a way for insurers and governments to share climate risks, with insurers providing expertise and governments providing financial capacity. PPPs can prevent insurer insolvency after disasters. 

5. Insurers are collaborating with research institutes, development banks, and other groups to improve climate risk assessment and develop products like micro-insurance for developing countries. 

6. Challenges remain in developing robust risk transfer tools like catastrophe bonds and making insurance affordable, especially in developing countries where public resources are limited.