Climate Change and Insurance Law: Addressing Challenges in Natural Disaster Coverage

Abstract

Background: Rising natural disasters due to climate change have placed immense strain on the insurance sector, demanding legal reforms to address coverage gaps.

Objective: This paper examines the adaptation of insurance laws in Japan and Brazil to cover climate-induced disasters and improve policyholder protection.

Methodology: The study employed a qualitative review of legal frameworks, supplemented by interviews with policymakers and insurance executives.

Findings: Japan’s stringent regulatory measures ensure proactive risk mitigation, whereas Brazil struggles with affordability and policyholder awareness. The findings highlight the need for an international framework to address climate-related insurance challenges.