Current and future insurance affordability pressures could be addressed by increased mitigation, revisions to building codes and standards and better land use planning . In New Zealand, insurance signals are motivating the government to address adaptation funding mechanisms . Some insurers offer premium discounts to customers with reduced risk , with increasing premiums reflecting known risk and no cover for some hazards in risky locations . Special excess payments are available for flood hazard so customers take responsibility for part of the claim, with increasing premiums to reflect known and foreseeable risk and downgrading cover from replacement value to market value . Retreat by private insurers from risky locations could increase the unfunded fiscal risk to the government , creating moral hazard . The litigation risk from failing to take adaptation action  could affect financial markets and government policy settings, creating cascading impacts across society  CRO Forum, 2019). For some climate risks, national governments act as 'last resort' insurers , but this could become unsustainable .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report