With India incurring losses to the tune of $9-10 billion annually due to extreme weather events, the second volume of the Economic Survey 2016-17 released on Friday pitched for climate insurance instruments.
India is among the world’s most vulnerable countries to climate change. Of the estimated $9-10 billion loss every year, nearly 80% remain uninsured.
The survey said innovative products supported by risk models and reinsurance pools can provide a huge opportunity to the insurance industry.
“One such model is that of Catastrophe Risk Pool (CRP) that aims to put the focus on proactive financial planning to deal with adverse impacts of natural disasters, instead of relying on fund-raising efforts after disasters, resulting in reduced economic losses as well as lowering the impact of disasters on the national budget,” the survey said.
