BUILDING FINANCIAL AND INSURANCE RESILIENCE IN THE CONTEXT OF CLIMATE CHANGE

Miroslav Miškić; Goran Ćorić; Danijela Vukosavljević

doi:10.5937/ekoPolj1703019M

Authors

Miroslav Miški?, PhD Faculty for Technical Sciences, Novi Sad
Goran Ćorić Singidunum University Belgrade
Danijela Vukosavljevi?, PhD Faculty for management, FAM, Sremski Karlovci

DOI:

https://doi.org/10.5937/ekoPolj1703019M

Keywords:

Risk management, flood risk, banking, insurance, climate change

Abstract

The key challenge for individuals, businesses and governments would be the building fnancial and insurance resilience in changing climate. It becomes important issue for the fnancial management to create fnancial protection and insurance means to manage the fnancial losses, reducing the economic impact of disaster events, and supporting better recovery. In accordance with that the Paper provides an overview of the feld and desk research of potential income implications of climate change for the fnancial management of disaster risks and losses. Desk research is based on Serbian case and its experience with the 2014 floods. Key fndings of the feld research provided in Serbia in 2016 on managing the risk of natural disasters, floods, fres, earthquakes as a part of organizational risk in 92 manufacturing frms, banks and insurance companies is also provided in the Paper. The methods used are: statistical description, X2 test and liner regression models. The results of both researches on risk management of floods showed that: companies calculate the impact of this risk to their year revenues as small, also a non-strategic approach of the Serbian government can be seen, as a fnancial gap of 65% in covering the losses. The research results pointed also to low awareness of the problem on the corporate and national level. The contribution of the Paper is to support further development of country and local plans for more effectively reducing the economic disruption of disaster events and policy approaches to supporting the penetration of disaster fnance and insurance coverage and the capacity of insurance markets to absorb these risks. Also, to support the improvement of the culture o risk management of business sector in this feld.

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