A new study across Austria, England, and Romania finds room for improvement in both public and private schemes that could help encourage risk reduction behaviors and reduce losses in future disasters.
“Currently neither insurance nor governments successfully encourage risk reduction. Increased and more targeted efforts particularly from local authorities will be important, and have the capacity to change the picture. This will be exceedingly important considering extreme events from climate change,” says IIASA researcher Susanne Hanger, who led the study. “This in turn is important for insurance to remain viable and for governments to not overspend on disaster aid.”
The study, published in the journal Risk Analysis, provides a detailed look at different public and private incentives for risk reduction and their association with actual risk reduction behavior, in three European countries.
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