Distributed Ledger Technology (DLT) to Drive Flood Reduction Solution Markets and Financing

As climate change brings greater risks of flooding and natural disasters, insurance is a critical mechanism for both proper urban planning and development to reduce risks and for funding recovery after disasters. The high cost and complexity of traditional insurance, however, has severely limited its adoption, especially in developing economies. In this chapter, we look at how distributed ledger technology (DLT) could be used to structure insurance mechanisms that help protect against disasters. We propose a combination of automated risk transfers using technology and local groups that work with policyholders to mitigate and adapt to climate change.