Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267250 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 10017
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
How will the increased frequency of coastal inundation events induced by sea level rise impact residential insurance premiums, and when would insurance contracts be withdrawn? We model the contribution of localised sea level rise to the increased frequency of coastal inundation events. Examining four Aotearoa New Zealand cities, we combine historical tide-gauge extremes with geo-located property data to estimate the annual expected loss from this hazard, for each property, to establish when insurance retreat is likely to occur. We find that as sea level rise changes the frequency of inundation events, 99% of properties currently within 1% AEP coastal inundation zones can expect at least partial insurance retreat within a decade (associated with less than 10cm of sea level rise). Our modelling predicts that full insurance retreat is likely within 20 – 25 years, with timing dependent on the tidal range in each location, and, more intuitively, on the property's elevation and distance from the coast.
Subjects: 
insurance
retreat
sea level rise
SLR
climate change
JEL: 
Q54
R38
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.