Haze risk in Southeast Asia: An insurance solution
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Haze pollution in Southeast Asia, often caused by the burning of forest and peat soils, is having an increasingly negative impact on human health, business operations and daily life.
While economic interests often drive peatland burning, meteorological factors such as El Niño also significantly influence the spread of haze. In 2015, a significant haze event in Indonesia triggered economic losses of more than USD 17.5 billion across Southeast Asia.
This paper explores the evolution of haze as a peril, its economic consequences and the viability of insurance solutions.