Mandatory Environmental Insurance in Peru?

Abstract

This article proposes the need to implement mandatory environmental insurance in Peru. It is based on the demonstration that, from the demand perspective, there is a need for more effective and efficient environmental management instruments in preventing and repairing environmental damage. Moreover, from the perspective of supply, it is possible to learn from the experiences of other countries to generate the necessary conditions for environmental insurance to become a sustainable business for insurers and, consequently, to be an effective instrument of environmental management. The research has an approach based on environmental economics and ecological economics, with a qualitative approach that integrates various specialty areas such as economics, environment, law, statistics, and public management, providing a comprehensive understanding of the problem. The methodology used is the review of secondary Peruvian sources and other countries that have already implemented the figure of environmental insurance, mainly publications made by their environmental authorities and research articles that analyze the effectiveness of environmental insurance. Finally, we identify key success factors for its execution, and we provide recommendations for its prompt implementation.