IDEAS home Printed from https://ideas.repec.org/a/sae/envirc/v34y2016i6p1175-1193.html
   My bibliography  Save this article

Insurance as maladaptation: Resilience and the ‘business as usual’ paradox

Author

Listed:
  • Paul O'Hare
  • Iain White
  • Angela Connelly

Abstract

Insurance and compensation are cited as critical elements of resilience to natural and non-natural hazards alike. As a strategy of risk management, it emphasises peace of mind, financial recompense and the swift restoration of a ‘business as usual’ status for civil, social and commercial life. Yet despite the contribution of insurance to risk management, the synergies with progressive or adaptive articulations of resilience are not sufficiently explicated. This paper explores the fundamental contradictions of insurance as a form of resilience through a study of flood risk management. It demonstrates how insurance regimes serve to structurally embed risky behaviour and inhibit change after detrimental events. As such, transformative interpretations of resilience conflict with the long-standing principles and operational norms of insurance that privilege normality. The paper concludes that, despite its currency within resilience discourses, insurance is maladaptive and that insurance regimes reinforce exposure and vulnerability through underwriting a return to the ‘status-quo’ rather than enabling adaptive behaviour.

Suggested Citation

  • Paul O'Hare & Iain White & Angela Connelly, 2016. "Insurance as maladaptation: Resilience and the ‘business as usual’ paradox," Environment and Planning C, , vol. 34(6), pages 1175-1193, September.
    • Handle: RePEc:sae:envirc:v:34:y:2016:i:6:p:1175-1193
    DOI: 10.1177/0263774X15602022
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0263774X15602022
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0263774X15602022?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. W. J. W. Botzen & J. C. J. M. Van Den Bergh, 2008. "Insurance Against Climate Change and Flooding in the Netherlands: Present, Future, and Comparison with Other Countries," Risk Analysis, John Wiley & Sons, vol. 28(2), pages 413-426, April.
    2. Simin Davoudi & Elizabeth Brooks & Abid Mehmood, 2013. "Evolutionary Resilience and Strategies for Climate Adaptation," Planning Practice & Research, Taylor & Francis Journals, vol. 28(3), pages 307-322, June.
    3. Brendan Gleeson, 2008. "Critical Commentary. Waking from the Dream: An Australian Perspective on Urban Resilience," Urban Studies, Urban Studies Journal Limited, vol. 45(13), pages 2653-2668, December.
    4. Jessica E. Lamond & D. G. Proverbs & F. N. Hammond, 2009. "Accessibility of flood risk insurance in the UK: confusion, competition and complacency," Journal of Risk Research, Taylor & Francis Journals, vol. 12(6), pages 825-841, September.
    5. Edmund C. Penning-Rowsell & Sally Priest & Clare Johnson, 2014. "The evolution of UK flood insurance: incremental change over six decades," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 30(4), pages 694-713, December.
    6. Stephen J. Collier, 2014. "Neoliberalism and Natural Disaster," Journal of Cultural Economy, Taylor & Francis Journals, vol. 7(3), pages 273-290, August.
    7. Simon Niemeyer & Judith Petts & Kersty Hobson, 2005. "Rapid Climate Change and Society: Assessing Responses and Thresholds," Risk Analysis, John Wiley & Sons, vol. 25(6), pages 1443-1456, December.
    8. David M. Harrison & Greg T. Smersh & Arthur L. Schwartz, Jr, 2001. "Environmental Determinants of Housing Prices: The Impact of Flood Zone Status," Journal of Real Estate Research, American Real Estate Society, vol. 21(1/2), pages 3-20.
    9. Turo-Kimmo Lehtonen & Jyri Liukko, 2011. "The Forms and Limits of Insurance Solidarity," Journal of Business Ethics, Springer, vol. 103(1), pages 33-44, April.
    10. Unknown, 2005. "Forward," 2005 Conference: Slovenia in the EU - Challenges for Agriculture, Food Science and Rural Affairs, November 10-11, 2005, Moravske Toplice, Slovenia 183804, Slovenian Association of Agricultural Economists (DAES).
    11. Annegret H. Thieken & Theresia Petrow & Heidi Kreibich & Bruno Merz, 2006. "Insurability and Mitigation of Flood Losses in Private Households in Germany," Risk Analysis, John Wiley & Sons, vol. 26(2), pages 383-395, April.
    12. Peltzman, Sam, 1975. "The Effects of Automobile Safety Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 677-725, August.
    13. Paul O'Hare & Iain White, 2013. "Deconstructing Resilience: Lessons from Planning Practice," Planning Practice & Research, Taylor & Francis Journals, vol. 28(3), pages 275-279, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas Thaler & Thomas Hartmann, 2016. "Justice and flood risk management: reflecting on different approaches to distribute and allocate flood risk management in Europe," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 83(1), pages 129-147, August.
    2. Jason Thistlethwaite, 2017. "The Emergence of Flood Insurance in Canada: Navigating Institutional Uncertainty," Risk Analysis, John Wiley & Sons, vol. 37(4), pages 744-755, April.
    3. Surminski, Swenja & Eldridge, Jillian, 2015. "Flood insurance in England: an assessment of the current and newly proposed insurance scheme in the context of rising flood risk," LSE Research Online Documents on Economics 66256, London School of Economics and Political Science, LSE Library.
    4. Peter John Robinson & W. J. Wouter Botzen & Fujin Zhou, 2021. "An experimental study of charity hazard: The effect of risky and ambiguous government compensation on flood insurance demand," Journal of Risk and Uncertainty, Springer, vol. 63(3), pages 275-318, December.
    5. Tesselaar, Max & Botzen, W.J. Wouter & Robinson, Peter J. & Aerts, Jeroen C.J.H. & Zhou, Fujin, 2022. "Charity hazard and the flood insurance protection gap: An EU scale assessment under climate change," Ecological Economics, Elsevier, vol. 193(C).
    6. Haddad, Eduardo & Teixeira, Eliane, 2013. "Economic Impacts of Natural Disasters in Megacities: The Case of Floods in São Paulo, Brazil," TD NEREUS 4-2013, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    7. Susanne Hanger & Joanne Linnerooth‐Bayer & Swenja Surminski & Cristina Nenciu‐Posner & Anna Lorant & Radu Ionescu & Anthony Patt, 2018. "Insurance, Public Assistance, and Household Flood Risk Reduction: A Comparative Study of Austria, England, and Romania," Risk Analysis, John Wiley & Sons, vol. 38(4), pages 680-693, April.
    8. Carolyn Kousky, 2010. "Learning from Extreme Events: Risk Perceptions after the Flood," Land Economics, University of Wisconsin Press, vol. 86(3).
    9. Max Tesselaar & W. J. Wouter Botzen & Toon Haer & Paul Hudson & Timothy Tiggeloven & Jeroen C. J. H. Aerts, 2020. "Regional Inequalities in Flood Insurance Affordability and Uptake under Climate Change," Sustainability, MDPI, vol. 12(20), pages 1-30, October.
    10. Alex Y. Lo & Faith Chan, 2017. "Preparing for flooding in England and Wales: the role of risk perception and the social context in driving individual action," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 88(1), pages 367-387, August.
    11. Chloe H. Lucas & Kate I. Booth, 2020. "Privatizing climate adaptation: How insurance weakens solidaristic and collective disaster recovery," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 11(6), November.
    12. Swenja Surminski, 2018. "Fit for Purpose and Fit for the Future? An Evaluation of the UK's New Flood Reinsurance Pool," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 21(1), pages 33-72, March.
    13. Collier, Stephen J. & Elliott, Rebecca & Lehtonen, Turo-kimmo, 2021. "Climate change and insurance," LSE Research Online Documents on Economics 110452, London School of Economics and Political Science, LSE Library.
    14. Beltrán, Allan & Maddison, David & Elliott, Robert, 2019. "The impact of flooding on property prices: A repeat-sales approach," Journal of Environmental Economics and Management, Elsevier, vol. 95(C), pages 62-86.
    15. Mol, Jantsje M. & Botzen, W.J. Wouter & Blasch, Julia E., 2020. "Behavioral motivations for self-insurance under different disaster risk insurance schemes," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 967-991.
    16. Ewa Lechowska, 2022. "Approaches in research on flood risk perception and their importance in flood risk management: a review," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 111(3), pages 2343-2378, April.
    17. W. J. Wouter Botzen & Jeroen C. J. M. Van Den Bergh, 2012. "Monetary Valuation Of Insurance Against Flood Risk Under Climate Change," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 1005-1026, August.
    18. Edmund Penning-Rowsell & Sally Priest, 2015. "Sharing the burden of increasing flood risk: who pays for flood insurance and flood risk management in the United Kingdom," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 20(6), pages 991-1009, August.
    19. Pilar Lopez-Llompart & G. Mathias Kondolf, 2016. "Encroachments in floodways of the Mississippi River and Tributaries Project," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 81(1), pages 513-542, March.
    20. Michelle Sheran Sylvester, 2007. "The Career and Family Choices of Women: A Dynamic Analysis of Labor Force Participation, Schooling, Marriage and Fertility Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 367-399, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envirc:v:34:y:2016:i:6:p:1175-1193. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.