The price of uncertainty: who pays when risk becomes reality?

Insurance is supposed to protect us from risk. But what happens when the risks themselves are changing? Risk doesn't disappear because we fail to recognise or price it. Decisions that make sense individually — pumping more groundwater during a drought, building another housing development, keeping water prices low — can accumulate until environmental change becomes economic loss. Insurance is one of the places where that loss becomes visible. Insurers pay some of the bill; the rest falls on h...