HuffPo: Humanitarian Innovation: Surprising News, Cautionary Tales, and Promising Directions

One surprising strategy for alleviating the lingering effects of trauma associated with natural disasters: insurance. In a study of “Risk-Taking Behavior in the Wake of Natural Disasters,” economists discovered that access to insurance increased Indonesian households’ willingness to adopt new technology, open a business, or otherwise invest in their future following natural disasters. (Earlier studies have shown the effect of property insurance on reducing instances of post-traumatic stress disorder among those affected by Hurricane Katrina.) Techniques to improve community resilience through innovative financial mechanisms deserve further investigation.