New insurance mechanism offers hope for climate change catastrophe coverage.
The article discusses how climate change is making extreme weather events more frequent and intense, posing risks to communities and economies. It compares different ways of dealing with these risks, focusing on a new method called securitization. This method helps insurance companies and governments manage financial losses from disasters like floods. The study suggests that securitization could be a better option than traditional insurance for preparing for future risks, based on an analysis of a major flood in Poland in 1997.