The devastation caused by natural catastrophes, such as the flooding of Chennai a few months ago, raise the question as to whether insurance has been effective in making communities resilient. Over the decade, have we made any real progress in covering significant sections of the population and their assets? With adverse effects of climate change posing a greater threat than ever before, preparing the society and economy to be more resilient has become imperative and can brook no further delay.
Financial resilience in the form of insurance or risk transfer is only a part of the solution. Investment in appropriate infrastructure, adherence to sound building codes, land use management, urban planning and a host of other factors are important considerations. These are needed for a sustainable solution. Affordable insurance is dependent on risk being reduced with all other things in place.
