Why behavior-smart thinking matters in the age of wild weather
We have spent years working at the intersection of tourism and sustainability. Recently, that path led us into a space few expect: climate risk insurance. BehaviorSMART is a member of a large consortium implementing SOTERIA, a pioneering initiative funded by the European Union, dedicated to advancing insurance solutions for climate change adaptation across diverse European regions and communities. Climate change is no longer a distant threat; it is here, reshaping how we live, travel, and do business. And while infrastructure upgrades and policy change take time, behavior change can start now.
Working in this new area is exciting and enriching. We are gaining a lot of insights and learning quite a bit about this new space. So, we decided to share with you some of the notes from our field work journal, highlighting what we have discovered and what we are testing right now.
📍THE CHALLENGE
Insurance is one of the most direct tools we have to mitigate the rising risks of extreme weather. Yet most people don’t buy it. Why?
Because human decision-making is not designed for slow-moving, high-impact risks. In a stable past, skipping insurance seemed reasonable. In today’s volatile climate, that same decision leaves people, companies, and entire sectors.
That is where behavior-smart thinking comes in.
🔬 FIELD EXPERIMENTS: 6 BARRIERS, 6 BEHAVIORAL SOLUTIONS
We identified six behavioral barriers standing in the way of insurance adoption, and we will be testing solutions designed to break through each one.
1. Probability Neglect
🧠 “It probably won’t happen to me.”
People underestimate how likely extreme events are.
What we are testing:
We present the same objective climate risk data through three different messengers:
- A local business association
- Local media outlets
- A trusted insurance coalition
What we hope to learn:
Which messenger best helps people recalibrate their sense of risk and grasp the real probability of an event affecting them.
2. Cost-Benefit Misperception
💰 “It’s expensive and I might not need it.”
Insurance is seen as a sunk cost instead of a smart hedge.
What we are testing:
We reframe the product descriptions, positioning insurance not as a cost, but as an investment in security, resilience, and continuity.
What we hope to learn:
Whether smart framing can flip perception and boost perceived value in a new climate economy.
3. Time Relevance Bias
⏳ “It takes too long to get paid.”
The delay between disaster and payout lowers perceived value.
What we are testing:
We vary payout timelines and premiums to find the “sweet spot” that makes people feel insurance is worth it, even if it costs a bit more.
What we hope to learn:
The ideal balance of cost vs. payout time that maximizes trust and uptake.
4. Conformity Bias
👥 “No one around me buys it.”
People mimic what others do, even when that is risky.
What we are testing:
We use social proof messaging: showing how peers and people in similar roles are beginning to insure, especially in light of recent climate shocks.
What we hope to learn:
Whether we can flip conformity on its head, making insurance the new normal.
5. Limited Awareness
📄 “I don’t fully understand how it works.”
Insurance terms are complex and full of jargon.
What we are testing:
We deliver the same policy details in three formats:
- Plain text
- Infographic-style visual summary
- User case with a very personal story
What we hope to learn:
Which format makes the product most relatable, understandable, and actionable.
6. Lack of Trust
🔐 “I don’t trust insurers.”
Skepticism, especially in rural or underserved communities, runs deep.
What we are testing:
We co-brand the product with a local, trusted bank and test if trust in the bank spills over to the insurance.
What we hope to learn:
Whether trusted intermediaries can overcome suspicion and unlock new segments.
🌍 WHY THIS MATTERS
Climate resilience is no longer a technical issue; it is a behavioral one. We can have the best insurance products in the world, but if people do not see the value, trust the source, or feel that it applies to them, they will not act.
That is why behavior-smart thinking matters. It helps close the gap between what is available and what people actually choose. It turns climate adaptation into something people do, not just believe in.
These field notes are just the start. We will keep testing, learning, and refining, and will share more insights along the way.
Read more about the SOTERIA project here.
This article was originally published on BehaviorSMART’s website.
BehaviorSMART bridges strategy and behavior with activation toolkits that turn good intentions into real impact. Follow our work and explore our resources to learn how behavioral activation becomes the engine of both market success and lasting sustainability.
*This article is human-written; AI tools were used for final edits and confirmation of data sources.