The article discusses how addressing climate risks requires more than just purchasing insurance from companies; it emphasizes the need for comprehensive regulatory planning to build climate-resilient infrastructure. Authors Jens Ulltveit-Moe and Bjørn K. Haugland highlight the rising costs of insurance premiums, indicating that simply relying on financial coverage against climate risks will not suffice. They point to examples in the U.S. and Denmark, where certain areas may soon become uninsurable due to repeated flood damage, to illustrate the increasing vulnerability of properties to climate change effects.

In Norway, the current model of equal pricing for natural disaster insurance does not account for the differing levels of climate risk faced by properties in various locations. This one-size-fits-all approach is highlighted as inadequate, especially as evidenced by Denmark's identification of 'red areas' where insurers consider denying coverage. The authors argue that such developments are symptoms of deeper systemic vulnerabilities and should spur a discussion not solely about insurance but about proactive measures to ensure climate-friendly urban planning and infrastructure investment.

Ultimately, the piece underscores the urgent need for policymakers to shift their focus from traditional insurance models to sustainable and climate-resilient planning solutions, making it clear that the cost of inaction and delays in investment will lead to higher expenses in the long term. This transforms the conversation around climate insurance into a broader discussion on climate adaptation strategies and mitigative regulatory frameworks that can protect communities from the adverse effects of climate change.