Climate Risks: Impact on natural hazards insurance between now and 2040


General Information:

Author: French Insurance Federation (Fédération Française de l’Assurance – FFA)

Year of publication: 2016

Available languages: English

Details of Assessment:

Type of assessment: Climate change adaptation assessment

Format of assessment: Report

Estimated costs for conducting: No information

Estimated duration of assessment: No information

To be carried out by whom: Multiple actors

Details: Consultants (climate experts), Scientists/researchers

Institutional scale of use: National

Assesment to be used by which target audience: State level decision makers

Output: Report


Coverage & Methodology:

Region of origin: Europe

Developed by which sector: Private sector

Applied in practice: Yes

Geographic coverage in analysis: Europe

Potential geographic coverage: France

Sectors covered: Commercial sector, Financial sector

Details: Focuses on the interplay between socio-economic factors and climate factors in general

Method used: Scenario mapping

Description of methodology: A scenario map of the growth in wealth and its exposure in the next 26 years in France is developed

Risk framework used: No explicit use of risk framework

Risk components incorporated: All

Hazards and impacts considered in the assessment: Cyclone (including tropical storm, hurricane and typhoon), Drought, Flood

Details: Data on the number and size of dwellings, number and size of businesses, growth in geographical concentration was generated by projections of the French National Institute of Statistics and Economic Research (INSEE). They were supplemented by specific data on hazard areas collected by the Natural Risks Mission. Climate projections were generated by the climate and environmental science laboratory Laboratoire des Sciences du Climat et de l’Environnement(LSCE). The two climate models used were a Global model of the Institut Pierre Simon Laplace and a regional model of météo France

Details: The time reference period of the study is from 1988 to 2013 (for the “Looking Back” section) and from 2014 to 2039 (for the “Projection” section)

Participatory elements: No

Consideration of interconnectedness and -dependencies of risks: No

Adressing uncertainty: No

Scope of assessment: Identification of risks, assessment of impacts

Relevance for losses and damages:

Economic/Non-Economic losses incorporated: Economic

Details: In addition, this study focuses on the direct damage caused to property by natural hazards, including operating losses. It does not include bodily injury and the damage caused to farm crops that have not been harvested and placed in store

Applicability for entire risk spectrum (from extreme weather events to slow onset processes): No

Details: Does not include SOE - sea level rise


Recommendations for Adaptation measures included in Climate Risk Assessment: No

Usefulness for political purposes: It can be useful for policy makers. Though for now it only gives an overview of costs that will occur due to climate change. Potential adapatation options would still need to be identified. This method is very much focused on mapping out future scenarios in a country to predict insurance costs

Applied by whom: French Insurance Federation

Open access: Yes